Cinch and different shareholders are backing the elevated takeover provide from International Auto Holdings for Lookers for £504.2 million.

In an announcement to the market, International Auto Holdings mentioned Constellation Automotive, which owns Cinch and a 19.5% in Lookers, has despatched “an irrevocable enterprise” to just accept the revised takeover provide.

Nonetheless, this announcement from Constellation nonetheless leaves the door open for different bidders to supply a better worth for Lookers “which equals or exceeds 110% of the elevated provide worth”.

Constellation Automotive had beforehand indicated that it would vote against Global Auto Holdings’ previous offer of £465.4m in July.

Because of the measurement of Constellation’s stake in Lookers, it meant that the bid was basically blocked, which meant a better provide wanted to be tabled to get the deal over the road.

Different shareholders like Artemis Funding Administration, which owns 10.6% of Lookers, and J O Hambro Capital Administration, which owns a 3.1% stake, have additionally despatched letters of intent to just accept the revised £504.2m provide.

A complete of fifty% of Lookers’ shareholders want to just accept the brand new provide to ensure that the takeover to go forward.

International Auto Holding has a most of 28 days to publish a suggestion doc and there’ll then be a interval of 60 days for consideration of the provide from the date of publication.

David Kendrick, UHY Hacker Younger Manchester chief govt (pictured), advised AM: “It seems the Lookers deal will now proceed with the provide now assembly the urged worth that Constellation launched.

“The deal nonetheless appears unbelievable worth for what is without doubt one of the main teams within the UK.

“There’s loads of change afoot with Lithia clearly on the enlargement path, Hedin rising and Pendragon remaining a possible goal for somebody.

“By no means have we seen so many worldwide companies circling the UK motor commerce so it definitely seems extra change is more likely to come later this 12 months and into 2024.”

Who’s AAG?

AAG has 15 massive scale dealership operations throughout Canada and the US and mentioned its potential acquisition of Lookers is a part of its plans to change into a world automotive retailer.

AAG mentioned it recognises the power and significance of Lookers’ relationships with its OEM companions and it expects to construct on these, permitting companions to learn from AAG’s “need and capability to spend money on its amenities, be a proactive companion with respect to adjustments within the working mannequin (together with the transition company fashions by a number of OEMs) and to be a prepared acquirer to develop its dealership website base to assist its OEM companions obtain their respective objectives”.

Kuldeep Billan, founder and govt chairman of AAG, has beforehand mentioned: “The proposed acquisition of Lookers represents a compelling alternative to amass one of many main UK auto retail teams whereas partnering with unbelievable OEM manufacturers  and Lookers’ roughly 6,500 sturdy group members.

“We look ahead to additional  constructing upon Lookers’ sturdy authentic gear producer (OEM) relationships by being a trusted and dependable retail  companion whereas delivering sturdy volumes and a excessive degree of buyer expertise throughout  a spread of OEM ‘go to market’ methods.