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AHG to buy out minority alliance stakeholders

WEST Perth-based vehicle retailer Automotive Holdings Group Ltd will buy out the minority stakeholders of its Perth Ford Alliance under a deal that required the consortium to sell three metropolitan dealerships. AHG bought a 60.3 per cent stake in the PAA in June 2005 with an option to acquire the remaining 39.7 per cent, as long as AHG’s combined Ford market share in Perth did not exceed 50 per cent, based on Ford’s market statistics for 2004. Under the deal, AHG will fully acquire Challenger Ford, Titan Ford and Lynford Ford, going with the existing two dealerships, NuFord and Seaview Ford, which it currently owns. The Ford International Capital Corporation owned the remaining shareholding. The three other PAA dealerships – Midway Ford, Centre Ford and Range Ford & Park Ford – have been sold to other parties. AHG chief executive officer Bronte Howson said in an announcement there would be minimal financial impact on the company’s ongoing result after it divests the dealerships and takes control of the PAA. “We expect the results from full ownership of the three retained dealerships in 2006-2007 to be similar to our 60.3 per cent share of the earnings of the PAA in 2005-2006,” Mr Howson said. AHG operates 23 dealerships in WA and recently moved into the Victorian market through the opening of a Hino truck dealership. AHG also operates logistics businesses throughout Australia through subsidiaries Rand Transport, KTM Sportsmotorcylces and AMCAP.

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