Motoring and logistics group AHG (ASX:AHG) announced it will sell its refrigerated logistics business for $400 million.
The automotive company is selling the business to Chinese-based HNA International on a debt and cash free basis comprising $280 million in cash and $120 million in finance lease liabilities.
The funds will provide AHG with additional financial capacity to grow its automotive retail operations and the flexibility to undertake capital management initiatives.
CEO of AHG Logistics Stephen Cleary will remain with the refrigerated logistics business and will be supported by the existing management team and employees of the business.
The transaction is expected to occur in the first half of 2018, subject to regulatory approvals.
Shares in AHG (ASX:AHG) are trading 6.94 per cent to $3.70.