AHG backs out of Covs Parts sale

Automotive Holdings Group has walked away from a potential sale of its Covs Parts business to Burson Group, which hoped to use the 25 stores as an entry into the WA market.

AHG managing director Bronte Howson said in a brief statement the sale wasn’t in the best interests of the company’s shareholders.

The company's share price rose by 0.5 per cent to $3.61 at 1:30pm.

Melbourne-based Burson said it was continuing to explore options to enter the WA market.

Burson has 121 stores on the east coast and said it still aimed to have 175 stores nationally by June 2019.

AHG is ranked 2nd on Business News'  list of Public Companies - Industrial.