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Cambria Automobiles has agreed to an MBO offer from CEO Mark Lavery valuing the company at £80m
The £80m MBO, subject to shareholder approval, was made by Bidco, a private company incorporated in England and Wales, which is wholly owned by Cambria Investments and ultimately owned and controlled by Lavery.
The £80m price tag represents a premium of 21.2% on the closing 66 pence share price on 19 March.
Lavery said while there may be headwinds ahead he wanted to capitalise on the growth opportunities following delisting.
Mark Lavery said: “I am pleased that the independent committee has unanimously recommended the cash offer.
“I am proud of the excellent job that has been done by the team over the last eleven years since Cambria’s IPO to substantially transform the business, but these achievements have not been reflected in the equity market’s valuation or perception of Cambria.
“I am mindful of a rapid period of change for the industry and that there may be headwinds ahead, but I look forward to capitalising on the growth opportunities ahead, and creating value for customers, employees and brand partners under private ownership.”
Philip Swatman, chairman of Cambria and member of the Independent Committee said: “Cambria has successfully executed a strategy over the last 11 years of public ownership.
“However, while Cambria has demonstrated considerable resilience, significant business uncertainties continue to persist in the near and medium term for a company of our relative size
“In recommending the Cash Offer to the Cambria Shareholders, the Independent Committee believe it is in the best interests of all stakeholders, enabling them to realise significant and immediate value, whilst enabling the long-term success of the business. Therefore, the Independent Committee are unanimously recommending the Cash Offer.”