Independent automotive distributor and retailer Inchcape has agreed the sale of its Toyota and Audi retail operations in the Russian city of St Petersburg, it announced on Thursday, to local market operator KlyuchAvto.
The FTSE 250 company said it agreed to dispose of the business for an enterprise value of £70m, which would be paid in cash on completion.
It said the transaction was conditional on final original equipment manufacturer (OEM) partner and regulatory approvals, and was expected to complete in the second quarter.
In 2020, the disposed operations generated revenue of £200m and profit before tax of £12m before exceptional expenses.
Gross assets at the end of 2020 totalled £77m.
Owing to accumulated foreign exchange translation losses of £110m, Inchcape said the disposal would crystallise an exceptional loss before tax of £65m.
“The proceeds from the disposal will be deployed consistent with the group’s strategy to grow the core distribution business,” the board said in its statement.
Inchcape said it would provide an update on its first quarter trading on 29 April.
At 0811 BST, shares in Inchcape were up 0.96% at 788p.
