Anchorage Capital Partners entered into a binding agreement to acquire refrigerated logistics division from Automotive Holdings Group Limited for AUD 100 million on February 27, 2020. Under the terms of transaction, Anchorage Capital Partners will pay AUD 100 million on a debt and cash free basis. As of April 29, 2020, the parties agreeing to adjust the cash proceeds that AP Eagers would receive on completion to AUD 75 million.

The transaction is subject to a number of conditions precedent, although notably it does not contain any regulatory conditions. Following broader market impacts as a result of COVID-19, AP Eagers and Anchorage have agreed a number of steps to facilitate completion of the transaction, including Anchorage waiving certain conditions precedent and is not subject to any outstanding conditions precedent that are within Anchorage's control. The transaction is expected to be completed in the first half of 2020.

The transaction is expected to close on June 30, 2020. The proceeds from the transaction will be utilized to repay all finance leases and hire purchase liabilities associated with Refrigerated Logistics, resulting in an expected reduction in net debt of approximately AUD 95 million. UBS and Luminis Partners Pty Ltd. acted as financial advisor and Ashurst LLP acted as legal advisor to A.P. Eagers Limited (ASX:APE), parent of Automotive Holdings Group Limited and to Automotive Holdings Group Limited.