CHEVALIER INT'L (00025) announced that all preconditions under the asset purchase agreement have been fulfilled, with settlement completed on September 26, 2025.

According to the announcement, the Canadian automotive industry has faced significant challenges in recent years, with the group's Honda dealership business experiencing continuously shrinking gross margins. Observing the increasingly strong consolidation momentum in the Canadian automotive retail market, the board decided to exit the Honda dealership market and sought potential buyers for the business.

During the fair transaction negotiations between both parties, the buyer - a group already engaged in a series of automotive dealership businesses - expressed strong interest in continuing to operate the Honda dealership business on the properties, recognizing the synergistic relationship between the business and the properties. Therefore, the board considered the disposal as a good timing and strategic opportunity to bundle the business with the properties for sale to an independent third-party buyer, thereby realizing the value of the group's investment.

Considering that the business value (also defined as goodwill in the announcement) was relatively low due to relatively small and continuously shrinking gross margins, the consideration was primarily determined based on the property values, taking into account historical market valuations and market trends under the macroeconomic environment in Ontario and Canada.

Following completion of the disposal, the group has terminated its operation of this business in Canada.