FTSE 250-listed car dealership Inchcape PLC (LSE:INCH)’s chief financial officer Adrian Lewis has reaffirmed the company’s commitment to its London listing despite agreeing to sell its UK retail business to a US competitor.
“We are very happy with our listing in London. Just because we don’t have a UK retail operation does not mean we should be listed elsewhere,” said Lewis in comments published in the Evening Standard.
“The London stock market is a great place to list shares. We get investors that understand distribution and understand our markets,” he added.
Inchcape announced the £346 million disposal of its UK retail operations to Group 1 Automotive UK, a wholly-owned subsidiary of Group 1 Automotive, earlier today.
Inchcape’s board said today that it has “concluded it is the right time for a new owner to take this business forward”.
Lewis’ comments serve as a relief to the Square Mile, which has been reeling from dozens of delistings and take-private deals of small-cap and large-cap British businesses.
Inchcape’s shares surged around 5% after announcing the sale.