After two bids, and now a revised bid, the bidding war to lead Hertz out of bankruptcy is heating up. The proverbial ball is in Hertz's court at the moment.
Hertz Global Holdings Inc said on Tuesday it had received a revised offer from Knighthead Capital Management, Certares Management and Apollo Global Management to fund the car rental company’s exit from Chapter 11 bankruptcy.
The revised offer aims to fund Hertz’s bankruptcy exit through direct common stock investments of $2.9 billion, direct preferred stock investments of $1.5 billion and a rights offering to raise $1.36 billion.
A media report on Monday said Knighthead Capital Management and Certares Management’s latest offer gives Hertz an enterprise value of more than $6.2 billion.
In March, Hertz said Knighthead and Certares had agreed to buy a majority stake in the company for $4.2 billion.
The new offer also rivals a bid backed by private investment firms Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, to provide equity capital to fund for Hertz’s exit from bankruptcy.
Hertz said it would evaluate the new offer and has not made a decision. The company’s shares fell 7% to $2.98 in premarket trading.
(Reporting by Shreyasee Raj and Ankit Ajmera in Bengaluru; Editing by Amy Caren Daniel)
This article was from Reuters and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to [email protected].
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Photo credit: A woman walks through a Hertz car rental lot. The company has received several bids to lead it out of bankruptcy proceedings. Hertz