Lookers agrees half-billion pound takeover by Canadian firm
The deal has got the backing of investors who own more than 40% of the company’s shares.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Car dealership Lookers is set to come under Canadian ownership after the board and major shareholders agreed to a nearly half-billion pound takeover.
The business said on Tuesday that it had negotiated a deal with Alpha Auto Group, an Ontario-based car dealership chain.
The 120p-per-share bid values the Altrincham-based business at around £465.4 million, it told shareholders.
That is around 35% more than the company’s shares were trading at on Monday.
The deal has already got big buy-in, with the board unanimously backing it alongside investors who hold 42% of the company’s shares.
Lookers said that TDR Capital, Artemis Investment Management, J O Hambro and Schroder had all promised to vote for the deal.
Alpha Auto Group will buy Lookers through its Global Auto Holdings Limited, which is owned by Alpha’s founder and referred to as Bidco in the stock exchange filing.
Lookers chairman Paul Van der Burgh said: “After a period of extensive engagement between the parties, the offer represents an attractive opportunity for our shareholders to realise cash now for their investment at a significant premium to the prevailing share price.
“We have spent considerable time reviewing the potential impact of Bidco’s ownership on Lookers’ wider stakeholders and are confident that the commitments given by them will protect stakeholder interests.
“Bidco has clearly outlined its commitment to continue supporting our customers, operations, communities, and most importantly our talented and committed people.”
Lookers reported a pre-tax profit of £84.4 million last year on revenue of £4.3 billion. It employs around 6,500 people.
Founded in Manchester in 1908 by John Looker, the business originally sold bicycles, and the occasional used car.
The business quickly switched to selling mainly cars, and in 1973 it listed on the London Stock Exchange.
Kuldeep Billan, executive chair of AAG, said: “With the UK auto retail market undergoing substantial change, including the adoption of new distribution models, we believe that the wider group is well positioned to navigate the current environment with geographically diversified operations and a focus on operational excellence.”