Global Auto Holdings will buy British car dealership chain Lookers for about 465.4 million pounds ($595 million) in cash, the companies said on Tuesday.
Global Auto Holdings values Lookers at 120 pence per share, a premium of 35.3% to the stock’s closing price on Monday.
Global Auto Holdings, an entity related to privately-owned Canadian car dealer network Alpha Auto Group by having the same owner, said the acquisition enables its entry to the UK market and supports its bid to become a global auto retailer.
Lookers directors said they intend to unanimously recommend the offer to shareholders.
Lookers, which sells new and used cars and vans and offers after-sales services, in April raised its 2023 profit forecast, supported by robust trading in used vehicles, stable margins and improvement in supply.
Shares in Lookers surged as much as 35% to 119.4 pence, their highest level since September 2017.
Source: Reuters.com