Update on Sale of AHG’s Refrigerated Logistics Division: Automotive Holdings Group Limited’s (AHG) stock was seen to plunge about 1.779 per cent and trade close to its 52-week low on June 28, 2018 (before market close). The downfall was seen after the announcement that the company made regarding the sale of its Refrigerated Logistics business to CC Logistics (Australia) Pty Ltd, subsidiary of HNA Group. As per the update, AHG announced that the sale will not be completed by June 30, 2018.
Further, HNA International has informed Automotive Holdings Group that it is yet to get Foreign Investment Review Board (FIRB) approval of this deal and that FIRB’s decision with respect to the approval of the transaction is now anticipated to be made around June 29, 2018, with formal notification of that decision expected in early July 2018.
HNA International proposed a correction to specific terms of the transaction such as a provision of funding support by AHG, yet the deal value remains unchanged.
The discussions in relation to proposed amendments are incomplete and there is no certainty that any revised transaction will be agreed between AHG and HNA International.
AHG stock has been down 23.85% in last six months, as at June 27, 2018.
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