Marshall board highlights Constellation's 'ownership responsibilities' in recommending takeover

Marshall Motor Group’s board has highlighted the “responsibilities of ownership of MMH” in a statement recommending the acceptance of Constellation Automotive’s £201.6 million takeover offer.

The leadership at the top AM100 PLC described the 400p per share offer for a 64.4% controlling stake currently held by Marshall Motor Holdings from the BCA, cinch and WeBuyAnyCar owner was “fair and reasonable” and suggested that the deal should be agreed.

But its statement, issued via the London Stock Exchange this morning (December 6) also laid out the group’s principals and the need for its successful formula to remain intact.

It said: “In addition to the financial terms of the offer, the board of MMH places significant emphasis on the wider responsibilities of ownership of MMH.

“These include its history and culture, its relationships with its manufacturer brand partners which 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.”

The statement said that the board had taken into consideration Constellation’s intention to work with MMH's existing manufacturer brand partners for a long term partnership and for MMH to continue to grow.

It added: “In addition, the board has noted Constellation's statement that it has no intention to make any changes to the conditions of employment or the balance of the skills and functions of MMH employees or management.

“The board also notes the statement made by Constellation in the Offer Announcement that it is looking forward to working with the employees at Marshall to build on their success and progress to date.”

Back in June this year Marshall issued its 4,000 staff a one-off cash "loyalty" bonus and a backdated pay review after outperforming the market as it emerged from a COVID-hit 2020.

In April it was listed in the Great Place to Work UK rankings for the 7th year running.

The AM Awards 2021's Dealer Group of the Year and Best Dealer Group (more than 10 sites), which completed the acquisition of £700m turnover Motorline Group in October, has also performed strongly in financial terms with the help of the market’s current tailwinds.

In October it increased its 2021 profit expectations by a further 25% – with underlying profit pre-tax profits expected to be “not less than £50m in 2021 – after outperforming the wider car retail sector in Q3.

Constellation’s offer for the group adds 86.6% to the volume-weighted average price per share of 214.3 pence for the twelve-month period to November 25 and 168.5% to the AIM admission price per share of 149p on 2 April 2015.

It also adds 41.3% to the closing price per share of 283p on November 25.

In a statement acknowledging the Marshall board’s intention to accept the offer, Constellation said it expects to post its offer document to Marshall shareholders during the week of the December 13.