NTAW Holdings sells Western Australia assets

·       NTAW Holdings signed agreements to sell its Western Australia retail and retreading assets alongside its South African business.

·       The asset sales allow the company to exit loss-making Western Australia operations and simplify its international operational footprint.

·       The divestments align with the company's broader effort to resolve regional management issues and address high fixed costs.

NTAW Holdings (ASX:NTD) executed agreements to sell the Western Australia assets of subsidiary Black Rubber alongside its 50% stake in South African business Tyrelife Solutions.

The Western Australia operations had experienced declining revenues and missed profit targets due to market fragmentation, management issues, and high fixed costs.

The company entered into an asset sale agreement with Get A Grip Tyres to transfer retail assets, equipment, leases, and customer contracts in Perth and Port Hedland.

Under the agreement, the buyer will assume property lease liabilities and offer continuous employment to eligible local workers.

Following the announcement, the NTAW Holdings share price was unchanged at $0.22.

The group originally acquired the Western Australia assets in November 2021 to expand its commercial tyre retail footprint across Australia.

These divestments follow a major intangible asset impairment recorded in December 2024 related to operational losses in Western Australia.