A group led by MBK Partners is in talks to take CAR Inc. (SEHK:699), according to four people with knowledge of plans to buy China auto rental firm, worth $700 million by market value. The consortium plans to offer more than HKD 3.10 per share to take Car Inc. private, two of the people told Reuters, representing a premium of at least 28% to the HKD 2.43 average of the company’s share price over the past month July 2020. The talks come after Car Inc. shares tumbled more than 50% in 2020, hit by fallout from an accounting scandal at the fast-growing Luckin Coffee chain with which it shares a Co-Founder, Charles Lu Zhengyao. While full take-up at that price would value Car Inc. at about $850 million, as the talks proceed, some existing shareholders might opt to retain stakes, said one of the people. The MBK consortium, which also includes Boyu Capital Consultancy Co. Ltd, has been in talks mainly with Beijing Automotive Group Co.,Ltd (BAIC Group), which became Car Inc’s biggest shareholder with a 29% interest in July 2020, two of the people told Reuters. All four sources declined to be identified as the deal talks were confidential. Car Inc, MBK and BAIC did not immediately respond to requests for comment. Boyu declined to comment. If the deal is completed, the consortium would count on eHi Car Services Limited, to run Car Inc, according to two sources, pushing out a management team close to Lu as well as buying his stake. eHi said it had “no knowledge about the consortium nor plans to participate in any possible post-transaction operation”. Lu did not immediately respond to a request for comment.