Core Viewpoint - Chevalier International (00025) has announced the conditional sale of its automotive business, which includes the sale and leasing of new and used OEM vehicles, maintenance services, and the sale of OEM parts, due to significant challenges in the Canadian automotive industry [1][2] Group 1: Business Context - The Canadian automotive industry has faced major challenges in recent years, including rising interest rates and increased costs of new vehicles, which have suppressed consumer demand for new cars [1] - The business has reported net losses before and after tax for the past two fiscal years, exacerbated by the global trade war [1] Group 2: Strategic Decision - The board of directors decided to exit the Canadian automotive agency market and put the business, along with its related assets and properties, up for sale due to increasing consolidation in the Canadian automotive retail market [1] - The company has not received any committed purchase offers, leading to the decision to ultimately close the business to mitigate further losses [1] Group 3: Buyer Interest - The buyer, a group already engaged in automotive agency business in Ontario, has expressed interest in continuing operations at the relevant properties or running the Chevalier automotive agency business [2] - The board views this sale as a strategic opportunity to bundle the business with its related assets and properties to reduce losses and realize the investment value of the related properties [2] - Upon completion of the sale, the company will cease operations of this business in Canada [2]