Jardine Cycle & Carriage Sells Automotive Operations
Jardine Cycle & Carriage (Jardine C&C) has signed a conditional agreement to sell its automotive distribution and retail operations in Singapore and Malaysia. The buyer is Indonesia's Chandra Asri Pacific, and the deal is expected to bring in about US$221 million. This announcement was made on August 21. The cash purchase price is around S$265 million (US$197 million). It also includes the transfer of S$333 million (about US$260 million) in loans owed by Jardine C&C to Cycle & Carriage Industries Pte Ltd, one of the units being sold.
The sale will transfer automotive entities and associated trademarks in Singapore, Malaysia, and Myanmar to Chandra Asri’s wholly owned subsidiary, CCHPL Holdings. Jardine C&C plans to use the proceeds from the sale to reduce its corporate net debt. Based on financial metrics from the first half of 2026, the sale is expected to increase Jardine C&C’s net tangible asset per share by 2.4%. This would raise the value from US$19.70 to US$20.20. Earnings per share (EPS) are projected to rise by 20.8%, increasing from US$2.52 to US$3.05 due to the gain from the sale. However, underlying EPS, which excludes non-trading items, is forecasted to decline by 3.9%, from US$2.81 to US$2.70.
Jardine C&C stated, "The proposed transaction enables Jardine C&C to crystallise value from the Cycle & Carriage business as we focus on our core markets of Indonesia and Vietnam and deliver a positive outcome for shareholders." The company is confident that Cycle & Carriage will do well under Chandra Asri's management, benefiting from synergies within the group.
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The sale could positively affect Jardine C&C's stock performance by reducing debt and increasing asset value. This may attract more investor interest in the automotive sector. Investors will be watching for the completion of the transaction and its impact on Jardine C&C's financial results in the coming quarters.
Based on reporting by: businesstimes.com.sg