Shares of Lookers, the car retailer, tumbled 15% on Thursday as it announced that its proposed takeover by Alpha Auto Group Holdings is unlikely to receive the necessary shareholder approval at the upcoming general meeting. Consequently, the deal is set to lapse, causing a major setback for Lookers.
Last month, Lookers had agreed to a takeover offer of 120 pence per share. However, its largest shareholder, Cinch Holdco UK, which owns 19.52% of the company’s issued share capital, plans to vote against the deal. As a result, Lookers is now reaching out to other shareholders to gauge their stance on the required resolutions needed for the acquisition.
Despite this setback, Lookers asserts that it remains optimistic about its future prospects. The company’s board will continue to navigate this challenging situation and seek alternative paths to drive growth and success.
The court meeting and general meeting, crucial for shareholder voting, are scheduled for July 27.
At 0846 GMT, Lookers’ shares were down 17.40 pence at 101.80 pence.
