Lookers to assess stakeholder support for Global Auto deal (updated)
20/07/2023 08:36
(Adds details about proposed deal in paragraphs 2 and 4,
details on deal support withdrawal by Cinch in paragraph 3)
July 20 (Reuters) - UK's Lookers LOOK.L said on
Thursday it was in talks with some of its shareholders to assess
if they would favour the acquisition of the car dealership chain
by Global Auto Holdings after a top shareholder said it would
vote against the deal.
Last month, Global Auto Holdings, an entity related to
privately-owned Canadian car dealer network Alpha Auto Group,
said it would buy Lookers for about 465.4 million pounds ($601.3
million) in cash, pending requisite shareholder approval.
Global Auto Holdings said in a separate statement on
Thursday Cinch Holdco UK intended to vote against the deal.
Shares of Lookers fell as much as 9% in early trading and
were down 7.2% at 110.6 pence as of 0720 GMT.
Court and general meetings to seek approval for the proposed
deal are scheduled to be held on July 27.
TDR Capital, which owns Cinch-owner Constellation Automotive
Group, is the top shareholder in Lookers with a 19.51% stake, as
per Refinitiv Eikon data.
($1 = 0.7739 pounds)
(Reporting by Aby Jose Koilparambil and Chandini Monnappa in
Bengaluru; Editing by Dhanya Ann Thoppil and Nivedita
Bhattacharjee)
((abyjose.koilparambil@thomsonreuters.com; +917483275231;))