The Board of Marshall Motor Holdings (MMH) has given an update to the takeover bid from Constellation, recommending that the offer is accepted.
Constellation made the offer of 400 pence per share on 29 November 2021.
The offer is conditional on Bidco having received acceptances carrying more than 50% of the voting rights of MMH, and the requisite regulatory approvals from the FCA being obtained. The FCA has up to sixty working days to consider an application for a change of control of MMH.
The Board has placed significant emphasis on the wider responsibilities of ownership of MMH, including “its history and culture, its relationships with its manufacturer brand partners that have been fundamental to MMH’s success to date, and the important role that MMH plays for other stakeholders, including its employees, customers and suppliers.”
It also noted Constellation’s statement showed no intention to make any changes to the conditions of employment or the balance of the skills and functions of MMH employees or management.
In a statement on the London Stock Exchange, it said: “The Board, having been so advised by Investec as to the financial terms of the Offer, consider the terms of the Offer to be fair and reasonable. In providing financial advice to the MMH Directors, Investec has taken into account the commercial assessments of the MMH Directors. Investec is providing independent financial advice to the MMH Directors for the purposes of Rule 3 of the Code.
“Accordingly, following careful consideration of both the financial terms of the Offer and Constellation’s stated intentions regarding the conduct of the MMH business under Constellation’s ownership, the Board intends to recommend shareholders accept the Offer.”