The board of HR Owen has recommended acceptance of a new takeover offer for the luxury car dealer group after Berjaya upped its bid.
Yesterday Berjaya Philippines Incorporated raised its offer from its initial 130p bid to 170p per share and announced it had bought 2.35m HR Owen shares from JP Morgan, taking its equivalent stake in the luxury car dealer group which sells Bentley, Ferrari, Bugatti, Lamborghini, Maserati, Aston Martin and Rolls-Royce up to 41.5%.
This morning HR Owen's board, which includes chairman Jon Walden and chief executive Joe Doyle, said it recommends that shareholders accept the increased offer as the directors intend to do so in respect of their own shareholdings.
The increased offer represents an increase of 30.8% over BPI's original offer of 130 pence per share announced on 17 July 2013 and a premium of 40.5% over 121p per share, being the closing share price on 16 July 2013, the day prior to BPI's announcement of the original offer.
"The board has considered the merits of the increased mandatory cash offer and has concluded, having been so advised by Rothschild, that 170 pence per share represents a fair value for the company," said HR Owen's statement this morning.
"In coming to this conclusion the board has considered the limited liquidity and marketability of HR Owen's shares and the fact that the increased mandatory cash offer is final and will not be increased unless another rival bid is made for the car dealer.
The offer will remain open for acceptance until the next closing date of 1pm (London time) on 27 September 2013.
One of HR Owen's largest shareholders is Bentley Motors.
This week a stock exchange announcement revealed that former HR Owen chief executive Nick Lancaster has been acting 'in concert' with Berjaya since it made its initial offer.