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Hertz Global to Sell Fleet Management Subsidiary to Athene Holding
Friday 27 November 2020

US-based car rental company Hertz Global Holdings, Inc. (OTC: HTZGQ) has entered into a stock and asset purchase agreement to sell substantially all of the assets of its wholly-owned fleet management subsidiary Donlen Corp to financial services company Athene Holding Ltd (NYSE: ATH) for an anticipated cash payment of USD 825m, the company said.

This sum is subject to adjustments for fleet equity, working capital and assumed debt.

Hertz anticipates that these adjustments will result in a purchase price at closing of at least USD 875m.

The agreement with Athene was reached following an initial marketing process.

If approved by the Bankruptcy Court at a hearing anticipated for December 16, 2020, the agreement with Athene will serve as the "stalking horse bid" in a court-supervised sales process, and the agreement will establish a minimum sale price for Donlen.

Hertz expects to conduct a competitive auction process pursuant to Bidding Procedures that will be subject to approval by the Bankruptcy Court to ensure Hertz receives the highest and best offer for the Donlen business.

White and Case LLP is serving as Hertz's legal advisor, Moelis and Co. is serving as investment banker, and FTI Consulting is serving as Hertz's financial advisor.

The Hertz Corp., a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin American, Africa, the Middle East, Asia, Australia and New Zealand.

The Hertz Corp. is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally.

In addition to owning the vehicle leasing and fleet management leader Donlen Corp., The Hertz Corp. operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales.

Donlen develops fleet management technology solutions and offers a proactive, hands-on approach to customer service.

Headquartered in Bannockburn, Ill., Donlen is a wholly owned subsidiary of Hertz Global Holdings.

Athene, through its subsidiaries, is a retirement services company that issues, reinsures and acquires retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs.
Date Published: 27/11/2020