Fleet News

ICA succeeds in CMA bid

INDEPENDENT Car Auctions has succeeded in its bid to gain control of Central Motor Auctions after ADT Auctions blocked its first attempt to acquire a 100% stake. ICA's bid has been declared unconditional after shareholders accounting for more than 55% of CMA's share capital accepted its offer of 87p per share.

When combined with ICA's existing CMA shareholding of 2.2% and the 444,000 shares purchased by Manheim Auctions Inc, ICA now holds 61.16% of CMA's issued share capital. The initial 90p per share offer - announced in May (Fleet News, May 10) - lapsed in June when ICA failed to acquire the required 75% stake after ADT Auctions more than doubled its 9.9% shareholding in CMA - preventing ICA gaining 100% control (Fleet News, June 14).

Unless the Monopolies and Mergers Commission intervenes, the takeover will become effective from July 10 and any remaining shareholders who have not accepted the offer are being recommended to do so as soon as possible. One CMA shareholder, believed to be ADT Auctions, has requested that the agreement between ICA and Manheim Auctions' shareholders be put on public display.

With ICA and ADT now holding more than 90% of CMA shares between them, CMA will almost certainly be delisted from the London Stock Exchange, leaving ADT with a 29.5% share in a company over which it has no day to day control.

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