Bosses at Swindon-based motor retail group Cambria Automobiles are exploring a possibility of a management buyout.
The listed company's board has given the green light to Mark Lavery (pictured), James Mullins and Tim Duckers to make an offer for the shares not already held by them at a price of 80 pence per share.
Cambria's share price opened at 71.1p this morning.
Established in 2006, Cambria runs a portfolio of more than 40 motor franchises across the UK. It says its strategy of acquiring underperforming franchises and working with manufacturer partners "has proved very successful."
Today's statement said that, while “there can be no certainty” that an offer will be made “a further announcement will be made when appropriate”.
Cambria's management team are now required to either announce a firm intention to make an offer for the company or announce that they do not intend to make an offer for the company no later than 5pm on April 19.
Locally, its portfolio includes Grange Jaguar and Land Rover in Swindon.
Cambria’s medium-term ambition is to create a £1 billion turnover business of five regional clusters.
The group's most recent trading update, for the five-month period to January 31, 2021, shows the impact of pandemic lockdowns.
The new car market was down 14.4 percent with the private segment down 13.3 percent and the diesel content down 37.3 percent.
The group’s new vehicle unit sales for the period were down 14.4 percent, with sales of new retail cars to private guests down 15.3 percent.