BEIJING (dpa-AFX) - Inchcape Plc (INCH.L), a multi-brand automotive distributor and retailer, announced Wednesday that it has agreed to sell three Retail sites in mainland China to China Yongda Automobiles Services Holdings Ltd. for net cash proceeds of 54 million pounds.
The sites comprise Lexus in Shaoxing, Porsche in Nanchang and Mercedes-Benz in Jiujiang. China has been Inchcape's only exposure to Retail-only operations in Asia and this transaction will see the Group exit China.
The deal is expected to complete by the first quarter of 2020 and is conditional upon final OEM partner /and regulatory approvals.
The company expects minimal impact to 2019's trading profit with the business expected to contribute about 9 million pounds to Group trading profit.
The company recently announced the sale of sites in Australia and the UK to optimise Retail-only portfolios. With these together, Inchcape will receive a cash inflow of about 150 million pounds through the disposal of the combined 16 sites.
The latest sale is consistent with its focus on core Distribution capabilities.
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