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Lookers PLC on Tuesday said it has agreed to be bought out by Canadian motor dealer in a £465 million deal.
Alpha Auto Group Holdings LP, an operator of auto retail dealerships across North America, will pay 120 pence per Lookers share.
Shares in motor dealer Lookers jumped 34% to 118.80 pence in London on Tuesday morning.
The offer is a 35% premium to the closing price of 88.7 pence on Monday.
The board of Lookers said they believe the offer represents a ‘compelling proposition’ for the firm’s shareholders. It will unanimously recommend the offer at an upcoming court meeting and general meeting.
Lookers said it would benefit from a stronger platform in the UK, with a potential to expand internationally, develop a complementary original equipment manufacturer relationships, and garner expertise from Alpha Auto Group.
Lookers Chief Executive Officer Mark Raban said: ‘I am excited about the combination with Bidco. It will create a business of greater scale and bring together two successful businesses with complementary OEM relationships, and a strong platform to support future growth in the UK.’
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