Global Auto hikes buyout offer for Lookers, shares soar (updated)
27/07/2023 09:13
(Recasts; updates share move)
July 27 (Reuters) -
Global Auto Holdings said on Thursday it had raised its cash
buyout offer for Lookers LOOK.L by 10 pence to 130 pence per
share, valuing the British car dealership at 504.2 million
pounds ($654.15 million).
The offer price represents a 46.6% premium to Lookers'
last closing price before an announcement was made. Shares of
the British company rose over 26% on Thursday to a six-year high
of 124 pence.
Global Auto Holdings, the entity related to privately-owned
Canadian car dealer network Alpha Auto Group, said last month it
would buy Lookers for about 465.4 million pounds in cash,
pending shareholder approval.
Earlier this month shareholders representing about 25% of
Lookers' voting rights intended to oppose the acquisition, the
company said.
Directors at Lookers, which sells new and used cars and vans
and offers after-sales services, intend to recommend unanimously
that shareholders accept, or procure acceptance of the revised
offer, Global Auto said on Thursday.
($1 = 0.7708 pounds)
(Reporting by Eva Mathews in Bengaluru; Editing by Dhanya Ann
Thoppil and Nivedita Bhattacharjee)
((Eva.Mathews@thomsonreuters.com;))