Following the May 1 announcement that ICA, backed by the world's largest auction company Manheim Auctions, had agreed terms with CMA for the deal, ITS has increased its shareholding to 18.9%.
Shareholders with a 52.4% stake in CMA are 'irrevocably' undertaken to back the scheme, but for ICA to gain 100% control a minimum 75% of shareholders must back the scheme (Fleet News, May 10). The remaining 25% will then be forced to sell their shares.
In a bid to ensure that happens, ICA has increased its offer under the terms of the scheme from 87p a share to 90p a share. But if the scheme fails to attract 75% backing, the offer price reverts to 87p.
The offer period ends on July 5 and whatever happens, ICA backed by Manheim will have a 52.4% stake in the newly merged ICA/CMA group, thereby achieving its objective of controlling its larger rival.