Penske Corp. is reducing its stake in Penske Automotive Group Inc. to 35 percent from 40 percent, through a secondary offering of up to 5.75 million shares of common stock, reported Automotive News.
Penske Automotive Group filed documents Thursday with the U.S. Securities and Exchange Commission proposing an offer price of $16.38 per share, which would raise about $94 million.
The proceeds will go to two shareholders, Penske Corp. and International Motor Cars Group II LLC. International Motor is liquidating its entire stake in the retailer.
Penske Corp. said it intends to use the funds for working capital.
After the sale, Penske Corp. will still own 31.8 million shares, representing about 35 percent of Penske Automotive Group's outstanding shares.
A recent voting agreement gives Penske Corp. Chairman Roger Penske and Penske Corp. majority voting control of the retailer's outstanding common stock after the transaction, according to reports by Automotive News.
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