LONDON (ShareCast) - (Sharecast News) - Pendragon has agreed to sell its Jaguar Land Rover dealership in Los Angeles for £15.8m in cash as the car retailer disposes of its US operations.
The UK company has signed a deal to sell the business to Triunity Automotive, a privately owned car dealer. At the end of December the dealership's assets were valued at £27.4m and profit before central costs was £0.3m.

The deal is subject to approval by Jaguar Land Rover. JLR will have right of first refusal over the trade and assets and can nominate an alternative buyer who will be able to acquire the business on the same terms.

Pendragon said the money from the sale would be used for general corporate purposes. The company decided to sell its US dealerships in 2017 and has raised about £77m from the disposal of a Chevrolet showroom and two other JLR dealerships in California.

The company, which trades as Statstone and Evans Halshaw in the UK, was already under pressure from falling sales before the Covid-19 crisis hammered the car industry. It announced 1,800 job cuts in July as part of a review that started before the pandemic.

Pendragon shares rose 1.7% to 8.85p at 10:05 BST.

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