Automotive Holdings Group Limited today announces that it has entered into a binding agreement to sell its refrigerated logistics business, comprising the operations of Rand, Harris, Scott’s and JAT to CC Logistics (Australia) Pty Ltd, a wholly-owned subsidiary of HNA Group (International) Company Limited, for an enterprise value of A$400 million .
The consideration will comprise approximately A$280 million in cash and the assumption by HNAI of approximately A$120 million in finance lease liabilities associated with Refrigerated Logistics.
Mr David Griffiths, Chairman of AHG said, “AHG has previously announced it would explore all opportunities to maximise shareholder value from the Refrigerated Logistics business. Although the restructuring initiatives are delivering a significantly improved financial performance, the sale provides AHG with the opportunity to realise a certain value for shareholders that reflects this continuing improvement. The sale also provides AHG with both the resources for further growth in our automotive operations and scope for capital management.”
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