Haversham Says Talks Are ‘Advanced’ on Possible Reverse TakeoverTom Lavell
Haversham Holdings Plc said it’s in “very advanced discussions” on a deal involving a possible reverse takeover, two days after Sky News reported the investment company might seek to buy the U.K.’s biggest second-hand car dealer.
Trading in Haversham’s stock has been suspended pending conclusion of the talks, and there’s no certainty a transaction will take place, the London-based company said Monday in a statement.
Haversham is seeking to raise 1.2 billion pounds ($1.77 billion) from investors to fund the takeover of auto dealer British Car Auctions, U.K. broadcaster Sky News reported on its website, without saying where it got the information. The talks mark the second time in six months that owner Clayton Dubilier & Rice LLC, a U.S. buyout firm, has sought to dispose of the car distributor, following work on an initial public offering that was abandoned late last year, Sky said.
Shares in Haversham started trading on London’s Alternative Investment Market in November after the company was formed by Executive Chairman Avril Palmer-Baunack, asset-management company Marwyn Value Investors Ltd. and other financial partners to make acquisitions in the automotive, manufacturing and services industries. Haversham said at the time that it’s targeting purchases with an enterprise value of 250 million pounds to 1 billion pounds.
Haversham stock, which rarely trades, cost 126 pence at the close on Friday in London.
Cenkos Securities Plc, Zeus Capital Ltd. and Bank of America Corp. unit Merrill Lynch International are representing Haversham on the deal.