Lookers agrees half-billion pound takeover by leading firm

The 120p-per-share bid values the Altrincham-based business at around £465.4m, it told shareholders.

That is around 35 per cent more than the company’s shares were trading at on Monday.

The deal has already got a big buy-in, with the board unanimously backing it alongside investors who hold 42 per cent of the company’s shares.

Lookers said that TDR Capital, Artemis Investment Management, J O Hambro and Schroder had all promised to vote for the deal.

Lookers chairman Paul Van der Burgh said: “After a period of extensive engagement between the parties, the offer represents an attractive opportunity for our shareholders to realise cash now for their investment at a significant premium to the prevailing share price.

“We have spent considerable time reviewing the potential impact of Bidco’s ownership on Lookers’ wider stakeholders and are confident that the commitments given by them will protect stakeholder interests.

“Bidco has clearly outlined its commitment to continue supporting our customers, operations, communities, and most importantly our talented and committed people.”

Lookers reported a pre-tax profit of £84.4m last year on revenue of £4.3bn. It employs around 6,500 people. Founded in Manchester in 1908 by John Looker, the business originally sold bicycles, and the occasional used car.

The business quickly switched to selling mainly cars, and in 1973 it listed on the London Stock Exchange.

Kuldeep Billan, executive chair of AAG, said: “With the UK auto retail market undergoing substantial change, including the adoption of new distribution models, we believe that the wider group is well positioned to navigate the current environment with geographically diversified operations and a focus on operational excellence.”