Caffyns Sells Land Rover Business In Lewes For Initial GBP5.7 Million (ALLISS)

LONDON (Alliance News) - Car dealer Caffyns PLC on Thursday said it is selling its Land Rover business in Lewes, East Sussex to Harwood Ltd for GBP5.7 million, plus an amount for stock to agreed upon completion.

Completion is expected on April 29, and the latest valuation of stock was GBP3.2 million at February 29.

In addition, Caffyns' current five-year contract with Jaguar Land Rover Ltd will not be renewed when it expires on May 31.

Caffyns said the proceeds from the sale will be used to reduce the company's overall borrowings and to reinvest in the ongoing Caffyns businesses.

Ownership of the freehold property from which the Land Rover business operates will remain with Caffyns, and will be leased to Harwood for up to three years.

Shares in Caffyns were untraded on Thursday, last quoted at 569.00 pence.

By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews

Copyright 2016 Alliance News Limited. All Rights Reserved.

Caffyns