Automotive Holdings Group has revealed that the planned $400 million sale of its refrigerated logistics business to Chinese conglomerate HNA Group will not be completed by the specified June 30 deadline, with the company unsure whether a deal will be reached.
Perth-based AHG said HNA was awaiting approval from the Foreign Investment Review Board, which was expected to make a decision on the sale tomorrow, meaning a formal announcement would not be made until early next month.
Concerns around the deal have centred on HNA’s financial struggles, with reports that the group is carrying about $US90 billion in debt.
According to its website, HNA has a focus on tourism, logistics and financial services. It has about $US145 billion in assets and more than 400,000 employees across the US, Europe and Asia.
“HNA International has proposed amendments to certain terms of the transaction, including in relation to the provision of funding support by AHG, but the headline sale price remains unchanged,” AHG said in a statement to the ASX.
“Discussions in relation to these proposed amendments are incomplete and there is no certainty that any revised transaction will be agreed between AHG and HNA International.”
The refrigerated logistics business recorded earnings before interest, tax, depreciation and amortisation of $35 million last financial year.
Shares in AHG were off 4.27 per cent at $2.69 each at 1230pm AEDT.
The company’s shares fell heavily in May, when they were trading at around $3.40, after the company flagged challenging market conditions and a drop in retail margins.
