LMP Automotive sells more assets, seeks approval for plan of liquidation

LMP Automotive Holdings, Inc. and its affiliates announced on Monday that it has entered into an all-cash asset sales agreement to sell several automotive dealerships in Florida and West Virginia and its real-estate assets. The Board of Directors unanimously recommended that stockholders vote to approve a proposed Plan of Liquidation of assets and dissolution of the company at the next Special Meeting of Stockholders.

The agreement involves LMP’s Kia dealerships in Port Charlotte, FL, Cape Coral, FL, and Beckley, WV, and its Subaru, Chevrolet, and General Motors dealerships in Beckley, WV. The sales are expected to close in October.

The Plan of Liquidation will also allow LMP to consummate the sale of the dealerships and enter into deals for its remaining assets not currently subject to sales agreements. The plan will also enable LMP to enter into value-maximizing transactions without subjecting any such transaction to delay or stockholder approval.

LMP Automotive stated that its stock price doesn’t reflect the company’s net asset value and believes that this transaction, along with the sale of its remaining assets, will enable it to maximize value for stockholders.

The Plan of Liquidation would allow the LMP to sell all company assets and distribute the net proceeds to stockholders, dissolving the company. 

According to a statement from CEO Sam Tawfik, “Management believes that upon finalization of the Plan of Liquidation we expect that the Company will be able to distribute approximately $115 million to $126 million to shareholders.”

Tawfik also said that the board and management team believe that because of the diversified nature of the company’s portfolio, pursuing multiple transactions with different potential buyers for assets or groups of assets presents the best opportunity to maximize stockholder value.

In February, LMP announced that it was exploring strategic alternatives for its business, including a possible sale of the company. According to a news release, the company engaged BofA securities to assist them in the process.

In July, the company announced it would sell its Chrysler-Dodge-Jeep-Ram store in White Plains, New York, for $15.8 million. The company initially bought an 85% stake in the dealership in October 2021. According to a regulatory filing, the company also sold property in Plantation, Florida, for an estimated $4 million.