Lookers retains independence as bidders walk away

THE consortium which had approached Manchester-based car dealership business Lookers about a potential offer has withdrawn it approach after failing to reach terms over a deal.

Shares in Lookers tumbled 18% on the news, making the stock one of the biggest fallers on the market. 

The consortium led by property entrepreneur Jack Petchey’s company Trefick alongside Moor Park Capital Partners and Brett Palos had made an indicative offer of 80p for the company, valuing it at £309m, earlier this month.

Following this, Lookers’ management agreed to open the company’s books to allow the consortium to formulate a proper bid.

However, the consortium issued a statement yesterday stating that after completing three weeks of due diligence it submitted a bid which was rejected.

“The parties put forward a proposal that they believe fully values Lookers based on the new information received, but the board of Lookers has informed us that it is not prepared to continue discussions on this basis,” it said.

The consortium said that it therefore decided to withdraw its approach and, in accordance with stockmarket rules, will not bid again unless it has an offer recommended by Lookers or unless a third party launches a bid for the company.

Lookers issued its own statement stating that it had received an initial bid from the consortium, but that this was “at a level materially below that previously indicated of 80 pence per Lookers share”.

“The board considered the proposal and unanimously resolved not to pursue this revised reduced proposal.  The board remains committed to the continued development of the company for the benefit of all its shareholders and stakeholders in the business.”