Leading automotive retail group McCarthy has sold its stake in Jersey-based McCarthy Motor Holdings UK for R114,84 million.
Leading automotive retail group McCarthy has sold its stake in Jersey-based McCarthy Motor Holdings UK for R114,84 million (£9,9 million).
McCarthy Holdings held a 66,67 per cent stake in McCarthy Motor Holdings UK, which owns four motor dealerships in the UK selling Toyota and Lexus brands. The purchaser was an unnamed company registered in Japan and the remaining third of the shares are held by a family trust.
According to a report, the move would allow the South African retailing group to "pump a net R74,6 million into its debt position".
McCarthy financial director Eugene Roden said Toyota UK had realigned its territories, forcing the concern to close several dealerships. As a result, Roden said, management in South Africa elected to dispose of its interest.
He also said the group did not have other interests in the UK apart from the four dealerships, thus McCarthy lacked the critical mass to be a significant participant in the UK motor market.
"The board wants management to focus solely on the core activities in South Africa," he was quoted as saying.
McCarthy also extended its cautionary notice issued nearly two weeks ago. News that the group was in talks fuelled speculation of a major empowerment deal for the motor industry, the report said.
Original article from Car