Jardine Cycle & Carriage (SGX:C07) signed a conditional agreement to sell its Cycle & Carriage automotive business in Singapore and Malaysia to CCHPL Holdings for SG$265 million, according to a Friday filing with the Singapore Exchange.
CCHPL is a subsidiary of Indonesia-listed PT Chandra Asri Pacific (IDX:TPIA).
The sale covers a group of the company's businesses that distribute and retail new and used vehicles and provide aftersales, financing and insurance services.
The deal also includes an earn-out of up to SG$30 million and novation to the buyer of around SG$333 million in intercompany loans owed by Jardine Cycle & Carriage.
The divestment will allow the automotive company to realize the value of the unit, with proceeds to reduce corporate net debt.