Hertz rises on $80 million investment in fleet management unit
HTZ•Hertz shares rose 12% after its fleet management arm, Oro Mobility, secured an $80 million equity investment from a group of investors. Hertz will retain majority ownership of Oro, which will become a standalone company.
1. Oro secures investment
Hertz Global said its fleet management arm Oro Mobility secured an $80 million equity investment from Cohen Private Ventures, funds or accounts affiliated with Certares Opportunities, and Knighthead Capital Management. The investment establishes Oro as a standalone company, with Hertz retaining majority ownership.
2. Leadership and market data
Hertz CEO Gil West will serve as Oro's executive chairman, and Doria Holbrook is Oro's CEO. Hertz shares rose 12% to $2.06 on Tuesday, though the stock has shed about 60% year to date. Short interest has more than doubled since the end of June to about 35% of the float; six of nine analysts rate the stock hold and three rate it sell, with a median price target of $2.25, down from $4.25 three months ago.
3. Earlier Uber partnership
In April, Oro formed a partnership with Uber to manage the ride-hailing company's autonomous robotaxi and driver-led operations in the United States. Knighthead owns roughly 51% of Hertz, per LSEG data.
