CHEVALIER INT'L (00025) announced that on November 12, 2025, the sellers (all being indirect wholly-owned subsidiaries of the company) entered into an asset purchase agreement with the buyers (001343586 Ontario Inc. and 1001329259 Ontario Inc.). The sellers conditionally agreed to sell the business along with related assets and properties for a consideration.

The business involves the sales and leasing of new and used OEM vehicles, providing maintenance and repair services for OEM vehicles, selling OEM auto parts, and operating all suitable automotive auxiliary equipment. In recent years, Canada's automotive industry has faced significant challenges, including rising interest rates and higher costs for new vehicles, which have dampened consumer demand. Consequently, the business recorded net losses before and after tax over the past two fiscal years, further exacerbated by global trade tensions.

Given the increasing consolidation trend in Canada's auto retail market, the board decided to exit the Chrysler dealership market and list the business (along with its related assets and properties) for sale. However, after failing to receive any committed purchase offers, the company ultimately initiated the closure of the business to mitigate further losses. During this process, the buyers expressed acquisition interest.

The buyers (a group already engaged in auto dealership operations in Ontario, Canada) indicated intentions to continue operating the business or managing the Chrysler dealership on the related properties. Therefore, the board views this sale as a strategic opportunity to bundle the business, its assets, and properties for disposal to an independent third-party buyer, thereby reducing losses and unlocking or realizing the investment value of the properties.

Upon completion of the sale, the group will cease operating the business in Canada.