(Yicai Global) June 1 -- Shares in CAR, a collateral victim of the Luckin Coffee financial scandal, jumped today after the Chinese auto rental firm revealed that Beijing Automotive Group may buy 21.26 percent of its equity from an existing shareholder.

CAR stock [HKG:0699] was trading at HKD1.89 (24 US cents), up 5 percent, as of 11.28 a.m.

Beijing Automotive, or BAIC, plans to buy all of UCAR’s 450 million shares in CAR for a price that is yet to be determined, CAR said in a statement this morning. It did not disclose how the move would affect control of the company.

Shares in CAR fell by more than half in early after it was discovered that Luckin Coffee had fabricated USD310 million in 2019 revenue. Charles Lu, the actual controller and chairman of Luckin, also controls CAR and the two companies have shared several top executives. Lu also holds over 10 percent of UCAR.

CAR announced shortly after the scandal came to light that it would look to bring in new outside investors and two weeks later said a unit of Warburg Pincus would buy 363 million shares from UCAR, which over the last two months has unveiled plans to sell several assets, including CAR equity.

UCAS and BAIC announced together in April that they would work together in vehicle purchasing, automotive new retail and other fields after UCAR acquired equity in German carmaker Borgward Group from Foton Motor, a unit under BAIC.

Editor: James Boynton