Lookers shareholders to vote against £465m takeover

Altrincham-based car dealership Lookers plc said on Thursday it believes that shareholders representing in excess of 25% of the voting rights of the company intend to vote against its agreed deal to be bought by Canadian car dealer network Alpha Auto Group Holdings LP (AAG) for £465.4 million in cash and taken private.

Alpha Auto Group’s offer, made through an entity called Global Auto Holdings Ltd, valued Lookers at £1.20 per share, a premium of 35.3%. Lookers shares fell about 7% to around £1.10 on the news.

“Further to this morning’s announcements that Cinch Holdco UK Limited (Cinch) intends to vote against the acquisition and that Lookers was re-engaging with other shareholders to understand whether the resolutions required to effect the Scheme of Arrangement in order to implement the acquisition are capable of being passed, the Lookers directors now believe that shareholders representing in excess of 25% of the voting rights of the company intend to vote against the resolutions and therefore that the resolutions are not capable of being passed,” said Lookers in a stock exchange statement.

The Court Meeting and General Meeting convened in connection with the acquisition are scheduled to take place on 27 July 2023.

“In the event that the resolutions do not pass, as the Lookers directors now expect, the Scheme of Arrangement will lapse and Lookers will remain an independent listed company.

“In this event, the Lookers directors will continue to pursue constructive engagement with all shareholders, including Cinch, who continues to be the company’s largest shareholder holding approximately 19.52% of the issued share capital.

As stated in the Scheme Document, the Lookers Directors remain confident in the future prospects of Lookers to create sustainable value for all stakeholders.

A further announcement will be made in due course, as appropriate.”