26th Jun 2019 07:56
(Alliance News) - Car seller BCA Marketplace PLC on Wednesday reported a rise in annual profit and separately agreed the terms of a GBP1.91 billion takeover by BBD Bidco.
BBD Bidco - owned indirectly by funds managed by private equity firm TDR - is offering 243p in cash for each BCA Marketplace share held, representing a premium of 25% to the closing price on June 19.
BCA Marketplace shares closed at 235.20p on Tuesday.
The deal values the FTSE 250 constituent at GBP1.91 billion, and BCA Marketplace last week said it would recommend the proposal to shareholders if a firm offer was made.
Accordingly, BCA Marketplace directors now intend to unanimously recommend the deal to shareholders, and BBD Bidco has received support from shares representing 44% of BCA Marketplace's share capital.
"In recommending this offer to shareholders, the board of BCA believes it is in the best interests of all stakeholders in the company. The offer from TDR gives shareholders the opportunity to receive cash at a significant premium to the prevailing share price and will allow BCA to develop its business as a private, unlisted company," said BCA Marketplace.
Separately, BCA Marketplace said revenue for the year to March 31 rose 25% to GBP3.03 billion from GBP2.43 billion the year before, with pretax profit up 18% to GBP89.5 million from GBP75.9 million.
The increase in revenue was as a result of growth across the business, the firm said, with UK Vehicle Remarketing and Vehicle Buying both exceeding GBP1 billion in revenue.
BCA Marketplace raised its dividend for the year by 13% to 9.65p.
"BCA has delivered a good resilient performance in the year against the backdrop of a challenging new car market, subdued conditions in the more stable used car market and economic uncertainty created by Brexit," said Executive Chair Avril Palmer-Baunack.
"The new financial year has started well despite the continuing UK-specific, macroeconomic and political challenges. The automotive sector does not stand still and neither will BCA in providing integrated services to support it," he added.
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