Luckin Chairman Lu Zhengyao’s Shares in UCAR Have Been Frozen

Founder of Ucar, Lu zhengyao (Source: Reuters)

UCAR Inc announced Wednesday that all 270 million shares held by Chairman Lu Zhengyao have been judicially frozen by the Beijing First Intermediate People’s Court until April 2023.

Lu was the largest shareholder of UCAR, accounting for 10.05% of the company’s total share capital.

SEE ALSO: Luckin Chairman Lu Zhengyao Resigns from CAR, the Car Rental Company He Owned Has $168 million in Debt

According to the announcement, if all the frozen shares are exercised, the controlling shareholder or actual controller of the company will change. The reason of the judicial freeze is unclear but hasn’t had a significant adverse impact on the company’s operations, UCAR said.

Star Vantage (China) Limited and Golden Ares Limited, the second and third largest shareholders of UCAR, are all acting in concert with Lu. The two together hold 14.03% of the total share capital of UCAR.

UCAR Inc, a large-scale high-tech auto enterprise group, includes well-known brands like China Auto Rental, UCAR Limited and Beijing Borgward Automobile Co., Ltd.