Key facts
- Mitsui & Co. and Penske Corp. have proposed to take Penske Automotive Group private.
- The proposed buyout is valued at approximately $3.8 billion.
- The offer price is $210 per share.
- The investors already beneficially own nearly 73% of Penske Automotive's stock.
- Penske Corp. holds about 34.3 million shares, and Mitsui & Co. holds 13.3 million shares.
Mitsui & Co., a Japanese trading house that has been an investor in Penske Automotive Group since 2001, has partnered with Penske Corp. to propose taking the U.S.-based auto and truck retailer private in a deal valued at approximately $3.8 billion. The offer price is $210 per share.
Penske Corp. and Mitsui & Co. collectively own nearly 73% of Penske Automotive's stock, with Penske Corp. holding about 34.3 million shares and Mitsui owning 13.3 million. The companies stated their intention to remain long-term shareholders regardless of the buyout proposal's outcome. Shares of Penske Automotive rose 5% in premarket trading following the announcement.
The proposal is currently under consideration by the board of Penske Automotive Group and is non-binding. If approved, the transaction will be funded through a combination of new equity and debt financing. This move by Mitsui & Co. aims to demonstrate the advantages of its long-term investment approach over those typically employed by private equity funds.