It is offering 725 pence per share directly to shareholders, which values Lookers at £258.8 million. Pendragon said the offer was final and would not be increased.
Lookers set the deadline of 12pm tomorrow at the beginning of February for Pendragon to announce a firm intention to make an offer for Lookers.
Lookers’ shareholders have 21 days after they receive the offer documents from Pendragon before it will be closed. However, the offer may be kept open if Pendragon receives enough unconditional acceptances.
Pendragon said it already has 4,486,459 accepted Lookers shares, which represents 12.6% of the company’s share capital.
Sir Nigel Rudd, chairman of Pendragon, said: “While we would have preferred to make this offer on a recommended basis, we have so far been unable to engage the board of Lookers in meaningful discussions.
“Therefore, we are making these proposals directly to Lookers’ shareholders and are confident they will be supportive of what we believe to be a very compelling offer.”
The Lookers board has noted Pendragon’s intention this morning and is currently ‘reviewing the situation’. Lookers urged shareholders to ‘take no action at the current time’. Lookers also said an announcement would be made about its intentions in due course.