RTTNews | Nov 26, 2020 01:03AM EST

01:03 Thursday, November 26, 2020 (RTTNews.com) - Vehicle rental company Hertz Global Holdings, Inc. (HTZGQ), which is undergoing bankruptcy, announced Thursday that it has entered into a stock and asset purchase deal to sell substantially all of its fleet management unit Donlen Corp. to Athene Holding Ltd. (ATH) for an anticipated cash payment of $825 million.

The price 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 $875 million.

The company said the agreement with Athene, a retirement services company, was reached following an initial marketing process.

If approved by the Bankruptcy Court at a hearing anticipated for December 16, 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.

Hertz President and CEO Paul Stone said, "The agreement to sell our Donlen business is another significant accomplishment for Hertz during our financial restructuring, following the $1.65 billion debtor-in-possession financing and $4 billion fleet financing recently approved by the Bankruptcy Court. As we continue to work to position Hertz and our business for the future, we believe this transaction provides significant additional flexibility to help us achieve our strategic and financial objectives."

Read the original article on RTTNews ( https://www.rttnews.com/3148794/hertz-global-to-sell-donlen-to-athene-holding-for-around-825-mln-cash-quick-facts.aspx)

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