Lookers PLC (LSE:LOOK), the British car dealership, said that Cinch and webuyanycar.com owner Constellation Automotive has bought roughly a fifth of the company’s total issued shares.
Constellation, which recently agreed a deal to purchase competitor Marshall Motor, has acquired a total of 78mln shares, representing 19.90% of the total issued shares, at a price of 102p per share, with the broker Peel Hunt adding the deal “appears to be a strategic stake at this juncture.”
Most of the shares were purchased from Tony Bramall, who was previously a non-executive director on the Lookers board before stepping down in December 2020.
Lookers say that Constellation has been in contact and is supportive of the company’s strategy and senior leadership.
"We are delighted to welcome Constellation as a significant shareholder of the group. Their investment endorses the board's view that the group remains significantly undervalued,” said chairman Ian Bull.
“As outlined in our recent announcement, trading performance is strong, with an excellent new car order bank and the group has a clear strategic framework to deliver our aspiration to become 'The UK's leading integrated automotive retail and services group',” Bull added.
Shares in Lookers were up 1.10% in morning trading, changing hands at 87p.