Penske Corp. Decreases Stake in Penske Automotive
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.
More Industry
Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →