Online car dealer Cinch has backed plans to sell Altrincham-based dealership Lookers Group to a Canadian company after the would-be buyer increased its offer to over half a billion pounds.
London HQd Cinch, which also operates a tech hub in Manchester, is the largest individual shareholder in Lookers with around 19.5 per cent in the North West group, and last month said it planned to vote against a lower offer of around £465m.
Ontario-based Alpha Auto Group has now increased its offer to 130p per share, valuing Lookers at £504.2m.
In an update issued to the LSE, through its Global Auto Holdings Bidco which will complete the deal, Alpha said it has now received an irrevocable undertaking from Cinch to accept the new deal.
According to the announcement, the irrevocable undertaking by Cinch will cease to be binding if another offer is received that equals or exceeds the revised bid by 110 per cent – equivalent to 143p per share.
The takeover offer also needs to come into effect by December 31, 2023 – unless a later date has already been agreed.
