(Alliance News) - Car dealer Pendragon PLC said on Friday that it has agreed to sell its assets in a Chevrolet dealership in Puente Hills, California for an initial GBP17.2 million, in order to reduce net debt.
Pendragon said that the total sale amount is yet to be determined but that at December 31 the gross assets that are subject to the sale totalled GBP42.0 million.
The deal is in line with the company's strategy to dispose of its US motor group assets and follows the sale of two Jaguar Land Rover dealerships, also in California, for a total of GBP60.0 million in May.
The purchaser, Scott Biehl, is an operator of a privately owned dealership group, Pendragon said.
The deal is not yet confirmed, and General Motors Co, the maker of Chevrolet cars, has the right to refuse the deal and nominate a new purchaser.
Shares in Pendragon were up 4.6% at 11.23 pence each in London on Friday morning.