(Sharecast News) – Global Auto Holdings (Bidco) updated the market on its recommended cash offer for automotive retailer Lookers on Monday.
The two companies had reached an agreement on 20 June which defined the terms and conditions of the recommended offer.
On 27 July, Bidco announced a crucial advancement, having reached an agreement with the Lookers board on the terms of an increased recommended cash offer.
The increased offer was set to be implemented as a recommended takeover offer under the Companies Act.
On 4 August, another significant update emerged, as it was decided with the consent of both the Takeover Panel and Lookers that the increased offer would proceed through a court-sanctioned scheme of arrangement under the Companies Act.
Several key investors had played a role in those developments, with J O Hambro Capital Management expressing in a letter of intent its commitment to the proposed scheme, representing around 8% of Lookers’ issued share capital as at 19 June.
Over time the commitment had evolved, with J O Hambro’s adjusted letter of intent accounting for 1.6% of the issued share capital as at 11 August.
Artemis Investment Management also engaged in the process through a letter of intent relating to 10.6% of Lookers’ issued share capital as at 19 June.
However, subsequent announcements revealed adjustments as a result of share disposals, leading to Artemis’ final commitment of approximately 2.8% of the issued share capital as at 11 August.
“Therefore, the total number of Lookers shares which are subject to irrevocable undertakings or letters of intent received by Bidco from Lookers shareholders has reduced to 92,304,550 Lookers shares, representing approximately 24.2% of the issued share capital of Lookers as at the close of business on 11 August,” the update confirmed.
Reporting by Josh White for Sharecast.com.