20th Jun 2019 11:13
(Alliance News) - WeBuyAnyCar.com owner BCA Marketplace PLC on Thursday confirmed receiving a GBP1.91 billion cash takeover offer from UK private equity TDR Capital LLP.
BCA, which buys and sells used cars, said it is in advanced talks with TDR Capital regarding a possible 243 pence per share cash offer for the company. Should BCA declare a dividend, then the offer price will reduced accordingly, it noted.
The 243p offer price represents a 25% premium to BCA's closing 195p share price on Wednesday. Shares in BCA were trading 22% higher at 237.20p each on Thursday morning in London, giving a market capitalisation of GBP1.86 billion.
BCA, formerly British Car Auctions, said it would recommend the merger proposal to shareholders if TDR Capital makes a firm offer for the company.
Under UK takeover rules, TDR is required to make an offer by July 18, or walk away.
BCA said Thursday it has begun its new financial year well despite continuing economic and political challenges in the UK. It expects to announce results for the 12 months that ended March 31, which it expects to be in line with management's expectations, on June 26.
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