Proactive Investors - Run By Investors For Investors

BCA Marketplace revs higher as WeBuyAnyCar owner in ‘advanced talks’ over potential £2bn takeover

The potential takeover of BCA from TDR Capital would be welcomed by under-fire fund manager Neil Woodford, whose Woodford Investment Management owns a 7.15% stake in the car retailer
A formal offer is yet to be made, but if one is forthcoming, BCA’s board plan to unanimously recommend it

Shares in BCA Marketplace PLC (LON:BCA) revved higher on Thursday after the WeBuyAnyCar owner confirmed it was in “advanced” talks over a potential £2bn sale.

TDR Capital, the private equity firm that owns David Lloyd Leisure, has proposed an offer of 243p per share in cash, some 25% higher than where the stock closed at on Wednesday.

READ: WeBuyAnyCar and rising prices keeps BCA moving forward

The proposal values BCA, which rejected a smaller offer from another private equity firm, Apax Partners, last summer, at £1.91bn.

Should TDR press ahead and firm up the offer, BCA’s board has said it will “unanimously” recommend that shareholders accept it.

The potential takeover would net under-fire fund manager Neil Woodford a much needed £136mln payday.

Payday for Woodford

Woodford Investment Management, which has drawn ire from investors after suspending a flagship fund earlier this month, owns a 7.15% stake in BCA and is the company’s third-largest shareholder.

In a brief trading update at the end of Thursday’s announcement, BCA said its full-year results, which are due next Wednesday, will be in line with expectations.

Bosses also confirmed their intention to propose a 6.65p final dividend alongside next week’s results.

BCA shares jumped 21.2% on the back of the news to 235.8p.

View full BCA profile View Profile
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use