12:31 pm, February 13, 2025
Constellation Automotive Group has taken its stake in dealer group Vertu to over 10% for the first time, new documents have revealed.
Submissions made this week via the London Stock Exchange show that the Cinch and We Buy Any Car Owner now holds 33,146,043 voting shares in Vertu.
That amounts to 10.007% of all voting rights, up from the 9.758% share in had previously.
Constellation is ultimately owned by private equity house TDR Capital, the firm behind Asda and Euro Garages and its shares in Vertu are owned by its subsidiary ‘Cag Vega 2 Limited’.
The move comes less than a week after Vertu warned that profits would be slashed and jobs axed this year, as a result of the ZEV Mandate and hikes national insurance costs.
Both Constellation and Vertu declined to comment when approached by Car Dealer.
However, market experts have given their opinion, with analysts appearing unsurprised at the developments.
David Kendrick, from accountancy firm Cooper Parry, told Car Dealer that it is unlikely that the rise will lead to a full takeover by Constellation in future.
He said: ‘It does not surprise me at all this move made by Constellation – Vertu shares after the announcement last week have dropped significantly and look extremely good value now.
‘As we saw with the Lookers scenario, I believe this to be a strategic investment, with perhaps an expectation that Vertu will be acquired by another large group or international business.
‘I do not believe it is a move by Constellation to take over Vertu in the longer term. As ever interesting times and Vertu looks exceptional value for someone wanting a significant foothold in the UK automotive retail space.’
Carl Smith, associate director of Zeus Capital, agreed, adding: ‘Vertu shares present very good value given its significant property portfolio.’
Constellation previously upped its share in Vertu three times in the space of just a few months in 2023, taking it at that point to a total holding of 6%.
Through its ownership of Cinch, TDR previously held a 20% stake in Lookers and blocked the first attempt by Canadian car dealer Alpha Auto Group to acquire the business.
It later backed an improved offer for Lookers and cashed in its shares as part of the deal.
Constellation Automotive Group also took Marshall Motor Group private in 2022 after a £325m swoop on the listed business.
