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Automotive distributor Inchcape said it had agreed to sell its three retail sites in mainland China to China Yongda Automobiles Services for net cash proceeds of £54m.
Inchcape said it did not have a scale presence in China and as a retail-only market these assets were less strategic to the company's global growth strategy. China had been Inchcape's only exposure to retail-only operations in Asia and this transaction would see the group exit China, the company added.
The transaction was expected to be completed by the first quarter of 2020 and was conditional upon final manufacturing partner and regulatory approvals.
'Given the timing of completion we expect minimal impact to 2019's trading profit with the business expected to contribute circa £9m to group trading profit,' the company said
Together with the announced UK and Australia disposals earlier this year, Inchcape would receive a cash inflow of nearly £150m through the disposal of the combined 16 sites.