Linklaters has represented Hertz Global Holding in a $240 million agreement to sell most of its stake in Car Inc, China’s largest car rental firm, to UCAR Technology, which turned to Davis Polk & Warwdell for legal counsel. 

Partners Paul Chow and Li He are leading the Davis Polk team advising UCAR, which provides chauffeured car services in China via Web and online platforms, the operating entity of Car Inc. 

After the deal, Hertz’s stake in Car Inc. will be slashed to 1.73 percent from 10.23 percent while UCAR’s stake will go up to 29.21 percent from 5.24 percent, making it the biggest shareholder in Car Inc. 

In spite its reduced stake in Car Inc, Hertz said it has extended a commercial agreement with Car to 2023. Last year, Hertz announced its plan to monetise its investment in Car Inc and use the proceeds for general business purposes.

Hertz executive James Peter Mueller is expected to leave the board of Car Inc following the sale, according to a company press release. Mueller was appointed senior vice president for international sales, marketing and revenues management at Hertz last July.