Pendragon has today (9 March) launched a GBP258.8m hostile offer for rival car dealer Lookers.
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The company is offering 1.15 Pendragon shares for each Lookers share – which are currently valued at GBP0.725.
Lookers shareholders have been urged “to take no action” while the board is reviews the situation.
Pendragon said it has received irrevocable undertakings from 12.6% of Lookers shareholders, but needs 50% to accept the bid.
The move could see Pendragon wipe out its remaining UK competition after recently taking over Reg Vardy but it has said the offer is final and will not be increased, with a closing date in 21 days, depending on acceptance by the Lookers board.
The rival UK dealer groups locked horns at the start of the year in bids to acquire Vardy, with Pendragon eventually winning with a GBP506m offer.
During negotiations Pendragon saw its three-way consolidation proposal rejected by Lookers.
Pendragon chairman Nigel Rudd said: “We believe that there are significant benefits available to shareholders from our continuing consolidation in the UK motor vehicle retail sector and this offer for Lookers is consistent with Pendragon’s strategy to deliver these benefits.
“Whilst we would have preferred to make this offer on a recommended basis, we have so far been unable to engage the board of Lookers in meaningful discussions. Therefore, we are making these proposals directly to Lookers’ shareholders and are confident that they will be supportive of what we believe to be a very compelling offer.”
