LONDON (Alliance News) - Shares in Haversham Holdings PLC were suspended on Monday after the investment vehicle confirmed it is in "very advanced discussions" which could lead to a reverse takeover.
Press reports on Monday had said Haversham is set to secure a GBP1.2 billion deal to acquire British Car Auctions, the used car dealership and owner of WeBuyAnyCar.com.
Haversham did not confirm the identity of the target in its statement, but said it is in "very advanced discussions" which could lead to a deal which would constitute a reverse takeover of the company, meaning its shares have been suspended under AIM rules.
The company said there is no certainty the deal will proceed and said it will provide a further update in due course.
Separately, Cenkos Securities PLC noted speculation that it would be assisting Haversham with the fund raising for the potential transaction. It said that while there's no certainty a deal with be done, any fundraising associated with the transaction could have a metrial impact on its 2015 revenue and pretax profit.
Cenkos is Haversham's nominated adviser and joint broker.
Haversham was created last year by Avril Palmer-Baunack and Marwyn, the specialist investment management company, with the support of institutional investors including Invesco, Artemis, Aviva and Schroders with the specific aim of finding an investment in the UK and European automotive, support services, leasing, engineering or manufacturing sectors. It was targeting acquisitions with an enterprise value of between GBP250 million and GBP1 billion.
Palmer-Baunack may be most well-known for a short stint as executive chairman of Stobart Group Ltd, but she also chairs vehicle tracking systems company Quartix Holdings PLC and was previously chief executive of Universal Salvage PLC, Autologic PLC.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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