Cinch has backed an attempt to take car dealership chain Lookers private after the offer was increased to more than £500m.
The online car retailer, which holds a stake of about 19.5% in the Altrincham-based group, announced last month that it planned to vote against the proposed deal.
At the time, the offer on the table from Alpha Auto Group, an Ontario-based car dealership chain, valued Lookers at around £465.4m.
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However, Alpha Auto Group increased its offer to 130p per share last week, which valued Lookers at £504.2m.
In an update issued to the London Stock Exchange, the potential buyer has now said it has received an irrevocable undertaking from Cinch to accept the new deal.
If the deal goes through, Alpha Auto Group will buy Lookers through its Global Auto Holdings Limited, which is owned by Alpha’s founder and referred to as Bidco in the stock exchange filing.