UK regulators probe takeover bid for HR Owen

Regulators are probing whether a Hong Kong-based company linked to the former chairman of ENRC is involved with a hostile takeover of Britain's biggest luxury car dealer HR Owen.

On Thursday Berjaya Philippines upped its takeover bid for the dealer of Lamborghinis, Ferraris, Rolls Royces and other luxury marques to 170p a share - valuing the company at £43.2m - after purchasing a 10 per cent stake held by JPMorgan.

However, the Takeover Panel is investigating whether minority shareholder Winnington Capital is acting in concert with Berjaya.

Mehmet Dalman, vice-chairman of Winnington, which holds an almost 6 per cent stake in HR Owen, resigned as chairman of ENRC in April this year after the miner became embroiled in a corporate governance scandal.

Berjaya was found by the panel on Wednesday to be acting in concert with former HR Owen chief executive Nick Lancaster. Mr Lancaster, who left his job running HR Owen in 2010, holds 1.03 per cent of the company through his pension fund. The panel said it was "continuing to investigate" a concert party allegation regarding Winnington.

Berjaya said it now controlled 40.8 per cent of HR Owen, including Mr Lancaster's stake. "Accordingly BPI is now required to make a mandatory cash offer . . . to acquire the remaining shares," it said.

If Winnington were found to be acting in concert, the combined shareholding of the bidders would reach 46.8 per cent of the company.

Berjaya Phillippines is a subsidiary of the Berjaya Group, founded by billionaire Vincent Tan, who also owns Cardiff City football club. Mr Dalman is chairman of the club.

Winnington and Mr Dalman did not immediately respond to requests from the Financial Times for comment.

Shares in HR Owen closed up almost 15 per cent at 162.50p after the improved bid was announced. The offer represents a 28.5 per cent premium on HR Owen's opening price on Thursday.

HR Owen, the UK's biggest luxury car dealer by sales, in July rejected an initial takeover offer from Berjaya that valued it at £32.5m, saying that it undervalued the company.

Shareholders have until September 27 to accept Berjaya's offer, the company said.

Its success could hinge on the decision of Bentley, the luxury car manufacturer owned by Volkswagen, which holds just under 28 per cent of HR Owen.

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