Altrincham-based car dealership Lookers plc said on Thursday it has received an increased cash takeover offer worth £504.2 million or £1.30 a share or from Canadian car dealer network Alpha Auto Group Holdings LP (AAG).

The recommended take-private offer is being made through an entity called Global Auto Holdings Ltd.

Lookers shares rose about 25% to about £1.23.

Alpha Auto Group’s previous offer had valued Lookers at £1.20 per share or £465.4 million.

The increased offer represents a premium of 46.6% to Lookers share price on June 19, 2023.

“The Lookers directors, who have been so advised by Numis and Peel Hunt as to the financial terms of the increased offer, consider the terms of the increased offer to be fair and reasonable,” said Lookers.