4:56 pm, September 15, 2023
The Financial Conduct Authority has given the go-ahead for the takeover of Lookers by Global Auto Holdings, paving the way for the dealership chain to leave the London stock market on October 9.
Twin announcements were made this afternoon by Lookers and Global via the London Stock Exchange, just as the markets were closing for the week, to say that following the approval by both boards and the scheme shareholders 10 days ago, the regulatory body had approved the deal.
The name Global Auto Holdings is a bidding vehicle for Canadian firm Alpha Auto Group.
Global had 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 some 19.5 per cent of Lookers’ shareholding, its backing of the new offer was seen as vital to the takeover happening.
Today’s announcements emphasise that the deal is still subject to certain other conditions, such as a court hearing, which is expected to take place on Wednesday, October 4 to sanction it.
However, assuming it all goes through, dealings in Lookers shares will be suspended at 7.30am on Friday, October 6 and its shares will be delisted at 8am on Monday, October 9.
It’ll bring to an end a tense saga that started in June and will see Lookers taken off the stock market.
