• Car Dealer Plus
No Result
View All Result
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
No Result
View All Result

Could industry stalwart Tony Bramall be about to launch a bid to take car dealer group Lookers private?

Seasoned motor trade executive builds his stake further in company after quitting board last year

James Baggott by James Baggott
February 22, 2021
0
Home News

Seasoned motor trade executive Tony Bramall has built up his stake in Lookers further this week – fuelling speculation he may want to take the company private.

Octogenarian Bramall quit the Lookers board as a non-executive director last year and this week increased his stake in the company both personally and through his Guernsey Investments company.

He now owns more than 20 per cent of Lookers. 

The news has pushed the share price up 20 per cent this week, trading this morning at 44p, compared to 33p at the end of last week.

Bramall’s share purchase was released in an RNS update to the Stock Market, late on Monday, posted at a time many company’s use to bury news.

Many in the industry think Brammall could be planning a move for Lookers which has been battered by accounting issues, an FCA investigation and internal fraud.

‘You could put two and two together on this one and surmise that Tony is looking to make a move,’ said one city insider.

‘He quit the board last year and he’s obviously not wanting to fade away into the background, increasing his stake yet again. We don’t know if he fell out with the board, but I wouldn’t put it past him to make a takeover bid.’

Mike Jones, ASE Global chairman and compiler of the Car Dealer Top 100 list of most profitable car dealers, said the rationale for Bramall’s share purchase could be ‘a number of things’.

He said: ‘Ever since the fraud, FCA investigation and management turmoil Lookers has been subject to rumoured takeover interest including the public pronouncement from Pendragon. 

‘Given his personal and corporate shareholding in practice any move would require Tony Bramall to be on board with it. 

‘As we saw in the dealer profitability ratings there is a good business within Lookers when you look through the exceptional adjustments and the recent share acquisitions could be anywhere from the preparation for a corporate transaction to an experienced car retailer spotting an undervalued asset. Time will tell.’

Last year, Pendragon CEO Bill Berman approached Lookers over a proposed merger, but the talks came to nothing. You can see what he said about the move in an interview with Car Dealer above.

Lookers appears to be getting its house in order following a tumultuous year.

It has slashed costs, set aside cash for the FCA fine and dealt with the internal fraud investigation. 

Analysts predict it will make a small loss for 2020, but could be on course to make £25m in 2021 and then closer to £40m in 2022.

Lookers former non executive director Tony Bramall
Tony Bramall

Bramall was a ‘white knight’ for Lookers in 2006 when a battle over dealer group Reg Vardy with Pendragon, resulted in a takeover bid from Pendragon for them both.

Bramall swept in and bought a large stake in Lookers, blocking the Pendragon attempt and effectively saving the dealer group and keeping it independent.

‘He’s in his 80s now but is incredibly driven,’ said an analyst.

‘Could these two facts – him leaving the board and increasing his stake – be a sign he wants to do things differently to the board? I think they could be.’

City experts told Car Dealer that at £160m ‘Lookers looks cheap’ and an offer of around 80p per share could be a premium that ‘gets the attention of the board’.

Bramall is a veteran of the car industry and has built and sold many dealer groups including one to Pendragon for £240m in 2004.

Lookers has been approached for comment. 

  • Join our breaking news WhatsApp group
  • Listen to the latest Car Dealer Podcast
  • List of the Top 100 profitable car dealers in the UK
Please login to join discussion

Related Posts

Volkswagen Passat GTE plug-in electric car being charged
News

VW suffers post-tax profit drop of 37 per cent but says that was better than expected

February 26, 2021
Supercar graphic
News

Moving on up: Here are the top 10 used supercars to buy if you want to see a return on your investment

February 26, 2021
Subaru sign via Newspress
News

Subaru adds three dealers to network with plans for at least 15 as part of restructure that will see 10 leave

February 26, 2021
G3 Motorhouse in Failsworth from Google
News

Car dealers must pay out thousands after Trading Standards investigation found they’d clocked cars

February 26, 2021
Mike Hawes
News

SMMT calls for dealers to open ‘ideally before April 12’ as car production levels slump to 12-year low

February 26, 2021
Online car sales on an iPad
News

Fifth of car buyers think online sales will overtake those in showrooms by 2025 – but many think it’ll never happen

February 26, 2021

Want the latest news?

Sign up to Car Dealer's daily news email updates

Subscribe
How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed
News

How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed

February 24, 2021
Used Car Awards with Mike Brewer and James Baggott graphi
News

Who won what at the Used Car Awards 2020? Mike Brewer reveals our winning car dealers

February 11, 2021
Car Dealer issue 156 front cover and Used Car Awards
Online Magazine

Out now: Car Dealer issue 156 features our Used Car Awards, H.R. Owen CEO Ken Choo and lots more

February 23, 2021
Used car market stronger than ever as August sees sales up by nearly 50 per cent for Big Motoring World
News

Opinion: Here are 10 reasons why I think there’ll be a rapid recovery in car sales when lockdown ends

February 16, 2021
Trophy Cars forecourt
News

Investigation: Meet the hyper-specialist car dealers making their money from weird and wonderful motors

February 11, 2021
Become a Car Dealer Plus member and get more out of this website including free legal advice
News

Become a Car Dealer Plus member and get more out of this website including free legal advice

January 15, 2021
Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK
Car Dealer Top 100

Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK

February 10, 2021
Bitcoin ATM terminal
News

Will car dealers in the UK accept Bitcoin for payment? Dealers speak out after Tesla plans to accept cryptocurrency 

February 18, 2021
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
Call us: 020 8125 3880

© 2020 Blackball Media

No Result
View All Result
  • Car Dealer Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100

© 2020 Blackball Media

Log In
Register
Register
Server C