Jul. 23 at 12:15 AM
Penske Corporation and Mitsui & Co. have offered
$210 per share in cash to acquire the publicly traded shares of Penske Automotive Group they do not already own, valuing the float at about
$3.8 billion. The proposal represents a 7.6% premium to PAG’s previous closing price and exceeds the stock’s prior 52-week high of
$207.22.
The non-binding offer would take Penske Automotive private and is expected to be reviewed by the company's board, likely through a special committee of independent directors. Because Penske Corporation and Mitsui are already the controlling shareholders, the deal leaves minority investors with limited prospects for competing bids.
Penske Automotive, one of the largest luxury and premium auto retailers in the U.S. and Europe, has benefited from strong performance in its high-margin service and parts business, helping drive the stock up about 26% year to date.
$PAG