Inchcape PLC
22 December 2006
INCHCAPE DISPOSES OF INCHROY JOINT VENTURE
HOLDING TO WING HANG BANK LIMITED
Inchcape plc ("Inchcape"), the leading international automotive distributor and retailer,
snnounces the sale of Inchroy Credit Corporation Limited ("Inchroy"), the Company's joint
venture finance company in Hong Kong, to Wing Hang Bank Limited for HKD1,400 million,
(c.£92 million), to be satisfied in cash. Completion of the disposal is conditional upon
approvals by the HKMA in Hong Kong and the Federal Reserve Board in New York.
Inchroy is a 50/50 joint venture with BankAmerica International Financial Corporation
("BankAmerica"). The principal business activities of Inchroy comprise the provision of
financing for motor vehicles and equipment and extending personal and mortgage loans. As
the Company's lending products and customer base have become more diverse it is no
longer a core business for Inchcape.
Gross assets of Inchroy were HKD5,300 million (c.£398 million) as at 31 December
2005. Consolidated net profit before tax of Inchroy amounted to HKD103 million
(c.£7.7million) and HKD125 million (c.£8.4 million) for the years ended 31 December 2005
and 2004, respectively. Consolidated net profit after tax amounted to HKD85 million (c.£6.4
million) and HKD103 million (c.£6.9 million) for the years ended 31 December 2005 and 2004,
respectively. The net impact of the sale is expected to be earnings neutral (before any one off
costs and amortization of intangible assets) in the financial year ending 31 December 2007
(note 2). The net proceeds due to Inchcape, 50% of the total consideration, will be reinvested
in its core Inchcape business.
For further information, please contact:
Group Communications, Inchcape plc
+44 (0) 20 7546 0022
Investor Relations, Inchcape plc
+44 (0) 20 7546 8432
Hogarth Partnership Limited (John Olsen/Barnaby Fry)
+44 (0) 20 7357 9477
Notes to editors
Inchcape plc
1. Inchcape plc is a leading international automotive distributor and retailer, with scale
operations in Australia, Belgium, Greece, Hong Kong, Singapore and the UK. The Group also
has operations in a number of other markets, including Eastern Europe, the Baltics, Russia
and South America. In addition to growing our core businesses, we are looking to develop
scale operations in new and emerging regions. We represent leading automotive brands and
operate either a retail, or a vertically integrated retail model (i.e. exclusive distribution and
retail), depending on the market. Our current key manufacturer partners are Toyota/Lexus,
Subaru, BMW, Mazda, Mercedes-Benz, PAG, Volkswagen, Audi and Honda. Inchcape plc is
quoted on the London Stock Exchange, with a market value of £2.3 billion. For further
information, visit us at www.inchcape.com
2. This statement is not intended to constitute a profit forecast for the financial year ending 31
December 2007 or for any other period. In addition, this statement should not be interpreted
to mean that earnings per share (before any one off costs and amoritsation of intangible
assets) will necessarily be greater than those for the relevant preceding financial period.