Cambria Automobiles chief executive Mark Lavery has said that he looks forward to “capitalising on the growth opportunities ahead” after agreeing the terms of the group’s management buy-out (MBO).
In in a statement issued via the London Stock Exchange today (June 10), the AM100 PLC revealed that the group would be returning to private ownership pending approval from shareholders at a court meeting and a positive vote in an upcoming general meeting.
Shareholders will receive 80 pence per share in cash in a deal which values the entire issued share capital of Cambria at approximately £80m.
The valuation represents a premium of approximately 21.2% on the closing share price of 66p on March 19, which was the last business day prior to the commencement of the offer period and 36.8% on the volume weighted average closing price per share of 58.5p in the six months to March 19.
Lavery’s bid for the business was approved by an independent committee of the board of directors of Cambria advised by Rothschild & Co.
Commenting on the offer, Lavery said: "I am pleased that the Independent Committee has unanimously recommended the Cash Offer.
“The Cash Offer represents an opportunity for Cambria Shareholders to realise their investment in cash at a material premium to the historical share price of Cambria where there has been a low level of trading liquidity or, where a shareholder might be prepared to do so, to retain a shareholding through the alternative offer.
“I am proud of the excellent job that has been done by the team over the last 11 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."
Lavery initially launched his MBO bid for Cambria alongside finance director James Mullins and managing director Tim Duckers back in March.
Mullins and Duckers later stepped aside due to ‘technical considerations’.
Lavery's successful bid has been made under a newly-formed limited company called Bidco.
Philip Swatman, chairman of Cambria and member of the Independent Committee which considered Lavery’s bid, 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."
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