November 22, 2017 / 10:29 PM / a year ago

UPDATE 1-Australia's Automotive Holdings to sell refrigerated logistics business

(Adds chairman quote, completion date, details on profit)

Nov 23 (Reuters) - Automotive Holdings Group Ltd said on Thursday it will sell its refrigerated logistics business to a unit of China’s HNA Group for A$280 million ($213.28 million) in cash.

The enterprise value of the deal will be A$400 million after including assumptions of finance lease liabilities associated with the refrigerated logistics business.

The automotive retailer expects the deal to be completed in the first half of 2018, and it will not operate a refrigerated logistics business for a period of five years from completion.

“Although the restructuring initiatives are delivering a significantly improved financial performance, the sale provides AHG with the opportunity to realise a certain value for shareholders that reflects this continuing improvement,” said David Griffiths, chairman of the Perth-based company.

Stephen Cleary will remain with the refrigerated logistics business as chief executive officer, the company added.

The company also said its operating net profit after tax for the July-October period had dipped 3.1 percent year-over-year.

$1 = 1.3129 Australian dollars Reporting by Aditya Soni in Bengaluru; Editing by Catherine Evansand Leslie Adler

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