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Timeframe settled for Cambria CEO Mark Lavery’s proposed £80m MBO

Mark Lavery, chief executive of Cambria Motors

Cambria Automobiles could be trading as a private company by July 29 after a timeframe was decided for the proposed management buy-out by chief executive Mark Lavery.

A statement issued by the group this morning (June 24) revealed that the Court Meeting and General Meeting at which the future of the group’s trading status should be decided will both be held at Grange Aston Martin, Hatfield, on July 16.

If Lavery’s offer – at a price of 80p per share, with a total value of £80 million – is approved by 75% of shareholders dealings in Cambria shares will be suspended on July 28 and cancelled on July 29, the statement said.

Shareholders are being urged to lodge their votes as soon as possible, via post or email, and were warned that votes received after July 14 would be invalid.

The court and general meetings will be held in a hybrid format, today’s statement said, with shareholders able to attend via a virtual connection, if preferred.

Earlier this week a letter of intent revealed that investment group Killik & Co had accepted Lavery’s offer of 80p per share.

The group owns 1,847,072 Cambria shares – 1.85% of the company.

At the time o the letter, the move meant that Lavery had received the support of around 22.7% of shareholders ahead of the formal meetings to resolve the MBO.

Lavery’s offer for the AM100 PLC 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, which began in March, was approved by an independent committee of the board of directors of Cambria advised by Rothschild & Co.

Commenting on the offer earlier this month, Lavery said: “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."

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