The proposed takeover of Cambria Automobiles by CEO Mark Lavery moved a step closer today (Jun 16) after an investment company shareholder said it will sell him its interest in the dealer group.
Car Dealer reported last week that Cambria had agreed to an £80m cash sole offer from Lavery to buy the dealer group, subject to approval from shareholders.
The proposal was unanimously recommended by the Cambria board in a move that will take the firm off the London Stock Exchange.
Now, a week later, it has been confirmed via a letter of intent released by the stock exchange that investment group Killik & Co has accepted Lavery’s offer of 80p per share.
The group owns 1,847,072 shares in Cambria – equating to 1.85 per cent of the company. It means Lavery has now received the support of about 22.7 per cent of shareholders, which equates to 22,688,198 shares.
The motion needs a 75 per cent majority to pass and is expected to come into effect in the third quarter.
Lavery is attempting to take control of Cambria through his own firm, Cambria Bidco Ltd, of which he is the sole director.
Speaking last week, he said: ‘I am pleased that the independent committee has unanimously recommended the cash offer.
‘I am proud of the excellent job that has been done by the team over the last 11 years since Cambria’s IPO to substantially transform the business, but these achievements have not been reflected in the equity market’s valuation or perception of Cambria.
‘I am mindful of a rapid period of change for the industry and that there may be headwinds ahead, but I look forward to capitalising on the growth opportunities ahead, and creating value for customers, employees and brand partners under private ownership.’
Last month, Cambria revealed that its pre-tax profit for the six months to the end of February rose by more than half to nearly £9.7m, helped by almost £2.5m in furlough grants and business rates relief.