SINGAPORE – Jardine Cycle & Carriage announced on Aug 21 that it has entered into a conditional agreement to sell its Cycle & Carriage automotive distribution and retail operations in Singapore and Malaysia to Indonesia’s Chandra Asri Pacific.The proposed transaction involves the sale of automotive entities in Singapore and Malaysia, along with associated trademarks across Singapore, Malaysia and Myanmar to Chandra Asri’s wholly owned subsidiary CCHPL Holdings.The estimated base purchase price payable in cash is about S$265 million. Sale proceeds will be used to pay down corporate net debt.The company said S$333 million that it owes to Cycle & Carriage Industries (CCI) will be novated to the buyer. CCI is one of the units to be sold to Chandra Asri.JC&C’s Singapore dealerships include Mercedes, Kia and Mitsubishi. Its Indonesian subsidiary Astra, which is not part of the deal, handles brands such as Toyota, BMW, Isuzu and Daihatsu.Based on first-half 2026 financial metrics, the disposal is expected to generate an estimated gain on disposal of about US$221 million (S$280 million).On a pro forma basis using full-year 2025 financial figures, the transaction is projected to increase JC&C’s net tangible asset per share by 2.4 per cent, from US$19.70 to US$20.20.Earnings per share (EPS) would rise 20.8 per cent from US$2.52 to US$3.05 due to the disposal gain, though underlying EPS, which excludes non-trading items, would fall 3.9 per cent from US$2.81 to US$2.70.JC&C said the sale enables it to crystallise value from the Cycle & Carriage business as it focuses on its core markets of Indonesia and Vietnam, and deliver a positive outcome for shareholders.The group has a majority stake in Astra International, an Indonesian conglomerate spanning the automotive sector, financial services, heavy equipment and agriculture. In Vietnam, it holds significant stakes in Truong Hai Group, Refrigeration Electrical Engineering Corporation and Vinamilk.It sees continued success for Cycle & Carriage under its new owner.Indonesia-listed Chandra Asri Group is a leading energy, chemicals and infrastructure solutions provider in South-east Asia, supplying products and services to manufacturing industries in both domestic and international markets. Its shareholders include Barito Pacific, SCG Chemicals Public Company and Thai Oil Public Company.In a separate statement on Aug 21, Chandra Asri said the acquisition marks an important step in the group’s regional expansion, and “supports the group’s long-term strategy to build an integrated energy, infrastructure and mobility platform across South-east Asia”.“The proposed bolt-on acquisition will provide Chandra Asri Group with a strong platform to participate more broadly across the mobility value chain, complementing its existing energy and retail businesses in Singapore,” the group said.It builds on Chandra Asri Group’s recent expansion in Singapore, including its acquisition of the Esso-branded retail fuel station network.An anticipated moveWord of JC&C’s divestment plan circulated in May, where sources estimated a transaction could value the business at US$250 million to US$350 million.It came alongside a series of moves by Jardine units attributed to portfolio cleanup and strategic review. Earlier in 2026, JC&C proposed changing its name to Jardine Matheson Southeast Asia, shedding the iconic “Cycle & Carriage” from its identity.It recently proposed a special dividend of about US$0.73 per share, comprising a cash payout and a direct distribution in specie of its remaining stake in Japanese carmaker Toyota Motor, completing another chapter in portfolio simplification. It also previously exited non-core stakes such as Siam City Cement.A year ago, it bought a gold mine through indirect subsidiaries for US$540 million.The proposed dealership divestment comes as parent group Jardine Matheson executes a broader portfolio rationalisation and strategic pivot.Jardine and its subsidiaries have been shedding capital-intensive assets across sectors, including property and infrastructure, to transform the conglomerate into an investment firm with a focus on higher-growth areas, Bloomberg reported in May.Property arm Hongkong Land recently set up an S$8.2 billion Singapore Central Private Real Estate Fund into which it injected its one-third interests in Marina Bay Financial Centre Towers 1 and 2, Marina Bay Link Mall, as well as One Raffles Quay into the fund.The fund made its first acquisition in July when it bought Wheelock Place for S$1.1 billion.Meanwhile, DFI Retail has also been shrinking its portfolio and refocusing resources on its most promising businesses. In 2025, it sold its Cold Storage and Giant stores in Singapore for S$125 million, exiting the Singapore food business.Shares of JC&C ended at S$27.50 on Aug 21, 1.2 per cent or S$0.32 higher. THE BUSINESS TIMES