A group led by MBK partners, a private equity firm focused on North Asia, is in talks with Shenzhou to rent cars, according to four people familiar with the matter. The group is interested in taking over and Privatizing China’s largest car rental company. The current market value of car rental in China is $700 million. As the negotiations were classified as commercial secrets, the four sources refused to disclose their identities. < / P > < p > according to two people familiar with the matter, the consortium led by ambok plans to offer HK $3.10 per share, thus privatizing Shenzhou car rental. The consortium’s offer is at least 28% higher than its average share price of HK $2.43 in the past month. < / P > < p > one of the sources said that at this price, the full purchase price would be about $850 million, but some existing shareholders may choose to keep their shares as the negotiations go on. < p > < p > since this year, affected by the financial scandal of Ruixing coffee, the share price of Shenzhou car rental has plummeted by more than 50%, because Lu Zhengyao, co-founder of Shenzhou car rental, is also the founder of Ruixing. At present, private equity investors all over the world are looking for acquisition opportunities, hoping to complete the acquisition at a lower price in the economic recession caused by the global pandemic of new coronavirus. According to the sources, according to the exchange documents, Lu Zhengyao, as the chairman of the company, holds 21% of the shares of Shenzhou car rental. At present, the market value of the company has dropped to about $700 million. < p > < p > two people familiar with the matter disclosed that in addition to ambok, the consortium also includes Boyu capital, a Chinese PE enterprise. Currently, the consortium is mainly negotiating with the state-owned automobile manufacturer BAIC group, which last month became the largest shareholder of Shenzhou car rental with a shareholding ratio of 29%. < p > < p > since lucky coffee was in trouble, investors’ interest in renting cars in Shenzhou has increased greatly. China’s car rental market has made huge profits, but the current market structure is still relatively scattered. Fortunately, the stock price of coffee fell to its lowest point in April. < / P > < p > according to two sources, this also indicates that the consortium hopes to consolidate its position in the fast-growing car rental market. As the penetration rate is still low and the market demand is relatively strong, the car rental market has a strong development potential. Ambok and its chairman have taken control of yihi, the second-largest car rental company in China. < p > < p > last year, the scale of China’s car rental market was US $92 billion, while the scale of China’s car rental market will reach nearly US $150 billion (about US $22 billion) in 2023, an increase of 60%. At present, the top three car rental companies have a combined market share of less than 30% in China. < / P > < p > two sources said that if the deal is completed, the consortium will operate Shenzhou car rental through yihi, establish a management team closely related to Lu Zhengyao, and acquire his shares. Yihi said that they “knew nothing about the consortium’s plans and did not have any plans to participate in a possible post transaction operation.” Mr. Lu did not respond to requests for comment.