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Inchcape disposal

Inchcape plc has completed the disposal of Inchroy Credit Corporation Limited, the company's joint venture finance company in Hong Kong, to Wing Hang Bank Limited for HKD1,400 million (£92m).

Inchroy was a 50/50 joint venture with BankAmerica International Financial Corporation and the net proceeds due to Inchcape are 50% of the total consideration.

Inchcape said the move is part of the extension of its market forces finance model, which allows its retail centres to offer customers access to a panel of finance companies. The firm has employed a similar strategy in the UK market in recent years.

"Following the completion of the Inchroy disposal, I am delighted that we are now in a position to start the roll-out our market forces finance model,' Inchcape chief executive André Lacroix said in a statement.

"The success of our finance offering in the UK over the past two years has proved very beneficial to our business and our customers," he said.

After completing the sale, Inchcapes retail network in Hong Kong will stop being exclusively tied to offering financing to Inchroy.

The company said the Inchroy disposal is in line with its strategy of focusing on its core business of international automotive retail and distribution. Earlier this month, Inchcape made a 480-pence-a-share offer for 93.67 pct of European Motor Holdings PLC and has given it until Feb 6 to accept. Inchcape's manufacturing partners include: Toyota/Lexus, Subaru, BMW, Mazda, Mercedes-Benz, PAG, Volkswagen, Audi and Honda.

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