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Inchcape faces bid rebellion

12 April 2012

CAR dealer Inchcape's hopes of taking full control of its Singapore subsidiary will be challenged this week by rebel shareholder Guinness Peat Group.

Inchcape will formally launch a £53 million cash offer for the 37% of Inchcape Motors Limited - listed on the Singapore stock market - that it does not already own. But the offer will be rejected as too low by investment company Guinness Peat, which has a 10.5% stake in IML, a distributor of Toyota and Suzuki cars.

Guinness Peat, led by chairman Sir Ron Brierley, pushed through changes at Inchcape, where it was an investor before selling its shareholding last year and switching its attention to the Singapore business.

Analysts expect most minority shareholders in IML to accept Inchcape's offer, but since it can force them to sell only if it gains control of 90% of the shares, the size of Guinness's stake means it could block Inchcape.

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