Automotive Holdings Group has agreed to sell its interest in Motorcycle Distributors Australia (MDA) to Austrian company, KTM Sportmotorcycles (KTMS).
AHG currently owns a 74 per cent interest in MDA and its subsidiaries which import and distribute KTM and Husqvarna motorcycles across Australia and New Zealand. KTMS holds 26 per cent of the business and will assume 100 per cent ownership on completion of the sale.
The trading result for the MDA business in the ten months to the end of April 2019 was a profit before tax loss of approx. $1.4 million.
The transaction values the total business at approximately $18 million. The final consideration and cash proceeds to AHG (for its 74 per cent share) will be subject to determination of working capital and other asset valuations at settlement, expected in July 2019.
It is not expected to impact the current takeover bid from AP Eagers.
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