Earlier, Jardine C&C itself has divested minority stakes in businesses in the region such as Vinamilk.
Pang of DBS estimates that Cycle & Carriage is worth more than US$350 million, based on FY2026 earnings estimates at US$50 million valued at a "conservative" 7x earnings
If the divestment is completed, JC&C can turn from net debt of US$200 million to a net cash position.
"While surprising given C&C’s long-standing status as a core, majority-controlled asset, the sale would enhance strategic flexibility and could increase the likelihood of a longer-term JC&C privatization," says Pang.
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The Jardine group acquired the Cycle & Carriage business back in 2002. The renowned car dealership carries brands most notably Mercedes-Benz, but also Mitsubishi, Chrysler, Jaguar, Kia, and Citroën.
"In our view, the sale would materially enhance JC&C’s financial flexibility for capital recycling, opportunistic M&A, and potential shareholder returns such as share buybacks.
"More importantly, if completed, it could increase the likelihood of a JCNC privatization in our view, subject to JM’s broader capital allocation priorities," she adds.
Jardine C&C shares closed at $32.88 on May 8, up 1.51% for the day but down 3.27% year to date.
