Lookers to be bought by Canadian car dealership AAG
Tue, 20 Jun 2023 | BUSINESS SALE
British car dealership chain, Lookers is to be bought by privately owned Canadian car dealer group Alpha Auto Group (AAG) for £465.4m.
According to reports, the Toronto based car dealership business has offered 120p per share for Lookers, who’s shares in closed at 88.7p on Monday and Lookers has agreed the ‘all-cash’ offer.
Lookers, which operates more than 150 dealerships across the UK reported net cash of £66.5m, and a property portfolio worth £290.5m.
Lookers directors said they consider the terms of the offer to be ‘fair and reasonable’ and added: “In assessing the offer, the Lookers directors recognise that there is inherent cyclicality in the auto retailing market, a significant ongoing structural transformation towards electric vehicles, as well as other factors such as inflation, macro-economic uncertainty, development of overseas supply chains, and structural changes to the distribution model, which create uncertainty for the medium-term market outlook.
“As a result, the offer represents an attractive opportunity for Lookers shareholders to accelerate and de-risk this value creation opportunity and realise an immediate cash exit for their investment at a significant premium to the prevailing share price.”
Global Auto Holdings Limited, a bidding vehicle will be used for the purchase. It said it believed the deal was an ‘attractive opportunity’ to enter the UK market.
Owners of Cinch, Constellation Automotive Group which owns a 20 per cent share in Lookers has also agreed to sell its holding as part of the deal.
Lookers initially sold bicycles and parts and occasionally used cars, but now sells cars Jaguars, Kias and Maseratis, among others.
The deal is expected to be concluded in late Q3 or early Q4 this year.
Read more about sales in the automotive industry.
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