22nd Dec 2006 09:36
Inchcape PLC22 December 2006 22 December 2006 INCHCAPE DISPOSES OF INCHROY JOINT VENTURE HOLDING TO WING HANG BANK LIMITED Inchcape plc ("Inchcape"), the leading international automotive distributor andretailer, announces the sale of Inchroy Credit Corporation Limited ("Inchroy"),the Company's joint venture finance company in Hong Kong, to Wing Hang BankLimited for HKD1,400 million, (c.£92 million), to be satisfied in cash.Completion of the disposal is conditional upon approvals by the HKMA in HongKong and the Federal Reserve Board in New York. Inchroy is a 50/50 joint venture with BankAmerica International FinancialCorporation ("BankAmerica"). The principal business activities of Inchroycomprise the provision of financing for motor vehicles and equipment andextending personal and mortgage loans. As the Company's lending products andcustomer base have become more diverse it is no longer a core business forInchcape. Gross assets of Inchroy were HKD5,300 million (c.£398 million) as at 31 December2005. Consolidated net profit before tax of Inchroy amounted to HKD103 million(c.£7.7million) and HKD125 million (c.£8.4 million) for the years ended 31December 2005 and 2004, respectively. Consolidated net profit after tax amountedto HKD85 million (c.£6.4 million) and HKD103 million (c.£6.9 million) for theyears ended 31 December 2005 and 2004, respectively. The net impact of the saleis expected to be earnings neutral (before any one off costs and amortization ofintangible assets) in the financial year ending 31 December 2007 (note 2). Thenet proceeds due to Inchcape, 50% of the total consideration, will be reinvestedin its core Inchcape business. For further information, please contact: Group Communications, Inchcape plc+44 (0) 20 7546 0022 Investor Relations, Inchcape plc+44 (0) 20 7546 8432 Hogarth Partnership Limited (John Olsen/Barnaby Fry)+44 (0) 20 7357 9477 Notes to editorsInchcape plc 1. Inchcape plc is a leading international automotive distributor and retailer,with scale operations in Australia, Belgium, Greece, Hong Kong, Singapore andthe UK. The Group also has operations in a number of other markets, includingEastern Europe, the Baltics, Russia and South America. In addition to growingour core businesses, we are looking to develop scale operations in new andemerging regions. We represent leading automotive brands and operate either aretail, or a vertically integrated retail model (i.e. exclusive distribution andretail), depending on the market. Our current key manufacturer partners areToyota/Lexus, Subaru, BMW, Mazda, Mercedes-Benz, PAG, Volkswagen, Audi andHonda. Inchcape plc is quoted on the London Stock Exchange, with a market valueof £2.3 billion. For further information, visit us at www.inchcape.com2. This statement is not intended to constitute a profit forecast for thefinancial year ending 31 December 2007 or for any other period. In addition,this statement should not be interpreted to mean that earnings per share (beforeany one off costs and amoritsation of intangible assets) will necessarily begreater than those for the relevant preceding financial period. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Inchcape