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EMH recommends Inchcape bid

Inchcape has made a £262.9 million offer for the entire share capital of European Motor Holdings.

The directors of EMH have ‘irrevocably undertaken to accept’ the 480 pence per share deal.

Inchcape said certain shareholders, representing approximately 40.5% of EMH would accept the offer.

“EMH focuses on a number of our core brands and its dealerships are geographically well positioned in relation to our existing market areas in the UK,” said Inchcape in a statement to the London Stock Market.

If the sale does go through, Inchcape said it would undertake a review of EMH’s business and potentially sell off any dealerships which don’t feature in its core brand partners.

Roger Smith, chairman of EMH, said: "As a result of the strategic review that we announced on October 18 we have examined a number of options for the company. We believe that the sale of EMH to Inchcape represents the best value for our shareholders and we are delighted to recommend the deal."

Andre Lacroix, group chief executive of Inchcape, said: "The acquisition of EMH allows us to take a major step forward in our strategy and creates a unique force in the UKautomotive retail market. It significantly expands our presence in the North of England and in the premium brand sector, which is the most profitable and fastest growing part of the UK market.”

Inchcape has sites incorporating Toyota, Ford, Volkswagen, Vauxhall Volvo and Kia franchises.

EMH has more than 110 sites incorporating Audi, Bentley, BMW, Jaguar, Land Rover, Mini, Volvo and Volkswagen.

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