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

In a press release 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 supply.

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 supply worth”.

Constellation Automotive had beforehand indicated that it might vote in opposition to International Auto Holdings’ earlier supply 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 supply 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 supply.

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

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

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

“The deal nonetheless seems to be unimaginable worth for what is likely one of the main teams within the UK.

“There’s loads of change afoot with Lithia clearly on the growth 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 actually seems extra change is more likely to come later this 12 months and into 2024.”

Who’s AAG?

AAG has 15 giant scale dealership operations throughout Canada and the US and mentioned its potential acquisition of Lookers is a part of its plans to grow to be a worldwide 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 services, 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 keen 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 incredible OEM manufacturers  and Lookers’ roughly 6,500 robust staff members.

“We sit up for additional  constructing upon Lookers’ robust authentic tools producer (OEM) relationships by being a trusted and dependable retail  companion whereas delivering robust volumes and a excessive stage of buyer expertise throughout  a variety of OEM ‘go to market’ methods.