(Alliance News) - Cambria Automobiles PLC on Wednesday said it received a takeover offer from Cambria Bidco Ltd, valuing the franchised motor retailer GBP80 million.
Cambria Bidco has made an 80 pence a share takeover offer, which is a 21% premium to the closing price of 66.0p on March 19, being the last business day prior to the commencement of the offer period. The stock closed down 2.4% at 81.00p on Wednesday.
Cambria Bidco is a newly-formed limited company which is wholly owned by Cambria Automobiles Chief Executive Officer Mark Lavery.
The offer would be put to shareholders with a unanimous recommendation that they accept it. It needs to be passed by a majority holding at least 75% of the share value, but is expected to come into effect in the third quarter of 2021.
Cambria Automobiles said the independent committee deems cash offer "fair and reasonable".
Lavery said: "I am pleased that the Independent Committee has unanimously recommended the Cash Offer. The Cash Offer represents an opportunity for Cambria Shareholders to realise their investment in cash at a material premium to the historical share price of Cambria where there has been a low level of trading liquidity or, where a shareholder might be prepared to do so, to retain a shareholding through the Alternative Offer.
I am proud of the excellent job that has been done by the team over the last eleven years since Cambria's IPO to substantially transform the business but these achievements have not been reflected in the equity market's valuation or perception of Cambria. I am mindful of a rapid period of change for the industry and that there may be headwinds ahead, but I look forward to capitalising on the growth opportunities ahead, and creating value for customers, employees and brand partners under private ownership."
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.