Marshall Motor completes sale of wholly-owned leasing arm for £42.5m

Marshall Motor Holdings said it has completed the sale of its wholly-owned leasing segment, Marshall Leasing Limited to N.I.I.B Group Limited, a wholly owned subsidiary of the Bank of Ireland for £42.5m, creating greater long-term value for its shareholders.

Marshall Motor said completion, which was subject to regulatory approval from the Financial Conduct Authority, had further strengthened the Group's balance sheet with net cash proceeds to be initially used to cut existing levels of indebtedness.

The Group reported net cash of approximately £4.6m on its balance sheet as at 30 June 2017 and net assets of 254p per share.

According to the Board, the sale would provide an opportunity to create greater long term value for its shareholders by allowing MMH to focus on its core motor retail business, as it continued to focus on its successful strategy of driving both organic growth and increasing its UK footprint through targeted acquisitions with existing brand partners.

Daksh Gupta, CEO commented: "The strategic disposal of our leasing business is an important step for MMH as it has de-geared the Group's balance sheet and allows us to remain focused on driving our core retail operations. I am particularly pleased that MMH has an ongoing relationship with MLL for the supply of new vehicles and we look forward to supporting the continued growth of MLL under its new ownership."