Global Auto Holdings’ takeover of Lookers moved a step closer today after the High Court sanctioned the purchase.
An announcement by Lookers issued via the London Stock Exchange this afternoon said that following last month’s approval by shareholders of the increased offer of 130p per share, the High Court had made an order today sanctioning the deal.
The Financial Conduct Authority also gave it the nod last month.
Global – which is a bidding vehicle for Canadian firm Alpha Auto Group – originally offered 120p a share but that was rejected by the largest shareholder Cinch, which is owned by Constellation Automotive Group.
It then came back with an offer of 130p a share, valuing the dealership chain at £504.2m, which Cinch agreed to.
As the biggest investor, with almost a fifth of the Lookers shareholding, its backing of the higher offer was seen as vital to the takeover happening.
An application has been made to suspend trading in Lookers shares as of 7.30am on Friday (Oct 6), making tomorrow the last day for dealings as well as the registration and transfer of shares.
The shares will then be delisted by 8am on Monday (Oct 9). Once that has happened, Lookers will be taken off the stock market.
The takeover saga began in June when the initial bid was made out of the blue by the firm that isn’t really known here but is a rapidly growing player on the other side of the Atlantic.