LMP Automotive Holdings to sell Stellantis dealership, hires BofA Securities as it seeks ‘strategic options’ for company; CFO terminated


LMP Automotive Holdings Inc. said it will sell its Stellantis dealership in New York, which it expects will generate $15.8 million.

The publicly traded Fort Lauderdale, Fla., auto retailer said Friday that it has signed an agreement to sell its Chrysler-Dodge-Jeep-Ram store in White Plains, N.Y. The transaction is expected to close in October.

LMP is selling the store to TAG Holdings of Rhode Island, according to a Monday regulatory filing. TAG Holdings’ incorporation documents have the same address as Tasca Automotive Group in Cranston, R.I.

BofA Securities is the broker for that deal.

In February, LMP said it was exploring strategic alternatives for its business including a possible sale of the company, as it announced it would terminate seven pending acquisitions because it was unable to secure financing to pay for them and to close the deals under contracted time frames.

LMP bought an 85 percent stake in White Plains Chrysler-Dodge-Jeep-Ram in October. It has seven other franchised dealerships in its portfolio.

The retailer said last week that the rest of its real estate appraised for about $50 million and that it believes its property and dealerships, including the Stellantis store under contract, are worth about $104 million.

“We believe that our stock price does not reflect net asset value of our company and continue to seek strategic options to maximize shareholder value and we have engaged BofA Securities to assist us in the process,” the company said in a news release.

LMP’s stock was trading at $5.55 a share about 2:45 p.m. Monday. It had been trading at more than $20 a share within the past year.

Last month, LMP said it also sold property in Plantation, Fla., for about $4 million, according to a regulatory filing.

LMP hasn’t reported financial results for the fourth quarter of 2021 and first quarter of this year and has said it will restate financial results for the first three quarters of 2021. The company also faces a possible class-action lawsuit, and has filed lawsuits seeking the return of deposits it made for acquisitions that it terminated.


Source link