AP Eagers proposal to divest Kloster Motor Group

Company News

by Rachael Jones

Automotive retail group AP Eagers (ASX:APE) has offered to divest Kloster Motor Group to help secure regulatory authorisation for the proposed merger with Automotive Holdings Group.

Klosters is based in the Newcastle and Hunter Valley region and has been owned by AP Eagers since 2007.
The business generates approximately $420 million in annual revenue.

AP Eagers believes its merger with AHG will not substantially lessen competition in any market, but will offer to divest to address ACCC concerns.

AP Eagers has entered into a Heads of Agreement with the Tony White Group for the sale of Klosters at an estimated sale price of $54 million for net assets and goodwill.

Shares in AP Eagers (ASX:APE) are trading 1.3 per cent higher at $9.31.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.