Lookers take-private deal back on the table after fresh £504m swoop
Car seller Lookers looks set to become the latest firm to be plucked from London’s markets after its board announced a fresh £504m take-private deal after a previous offer collapsed last week.
In a statement this morning, the London-listed firm said it had come to an agreement with Global Auto Holdings to sell itself for 130p per share.
The offer marks an 8.3 per cent increase from an offer originally tabled by in June. Bosses at Lookers said the new bid was “fair and reasonable” and they would now recommend it to shareholders.
A takeover looked set to collapse last week when major shareholder Constellation, which owns just under 20 per cent of the firm via its used car arm Cinch, said it would not back the previous £465m deal.
Lookers now needs the backing of 75 per cent of shareholders to get the deal over the line. THe firm has been advised by investment banks Numis and Peel Hunt on the terms of the hiked offer.
The fresh bid comes amid fears of a wave of take private deals crystallising in the second half of the year after a slower start than expected.
In a half year review of takeover activity in the UK earlier this month, Peel Hunt said dealmaking had “rebounded to an extent” this year and private equity’s interest in listed firms had returned but “not with the conviction that many anticipated”.