8:11 am, November 29, 2021
The owner of BCA and Cinch today made an offer of nearly £323m to take over Marshall Motor Group.
As reported by Car Dealer on Friday, Constellation Automotive Group had expressed an interest in any sale proceedings, following speculation.
Marshall’s biggest shareholder – Marshall of Cambridge (Holdings) Ltd (MCH), which owns some 64.4 per cent of its ordinary share capital – had told the board that it was considering selling its entire shareholding.
MCH holds 50,390,625 ordinary shares in Marshall.
In a statement issued via the London Stock Exchange this morning (Nov 29), Constellation’s board said its wholly owned subsidiary – CAG Vega 2 Ltd – would be seeking to snap it all up at 400p a share – a 45.9 per cent increase on Friday’s closing price of 274.0p, which itself was 5.17p down on the previous day.
The offer price values MCH’s holding at approximately £322.9m, and CAG Vega 2 said it had ‘received an irrevocable undertaking’ from MCH to accept the offer.
The statement added: ‘The Constellation board is looking forward to working with the team at Marshall to build on their success and progress to date.’
It said it intended seeking a recommendation from Marshall’s directors for its offer.
However, following today’s announcement, industry analyst Mike Jones speculated that more offers could be on the cards, tweeting: ‘A quick move following Friday’s announcement. Others to follow now people know it’s available?’
Constellation also owns WeBuyAnyCar.
Car Dealer has approached BCA for a comment, but it’s believed if the takeover happens, it will see Marshall taken off the stock market and become a private enterprise.
Marshall said this morning via the stock exchange that it would be making an announcement in due course.
It has 164 franchises covering 27 brands across 37 counties in England and Wales. It also operates 10 trade parts specialists, seven used car centres, six standalone body shops and one pre-delivery inspection centre.
UPDATE (4.30pm): As Monday progressed, Marshall’s share price rocketed, ending the day up 43.07 per cent at 392p.
