Penske, Mitsui bid to take Penske Automotive private in near $4 billion deal

Penske Corp. and Mitsui proposed to buy out Penske Automotive Group in a deal that could be worth $3.78 billion.

Penske Corp. paired up with the Japanese investment firm to offer $210 a share to take the auto dealership chain private.

The two investors already beneficially own nearly 73% of Penske Automotive’s stock, they said in a Wednesday filing with the Securities and Exchange Commission. That means they are proposing to buy about 18 million remaining shares.

Penske Corp., which is the majority shareholder, owns roughly 34.3 million of Penske Automotive’s 65.7 million total shares, while Mitsui owns 13.3 million.

Shares of Penske Automotive rose 5% to $204.07 in premarket trading.

The companies said they wouldn’t sell their shares and plan to remain long-term shareholders, regardless of the outcome of the buyout proposal. The proposal is currently under consideration of the board and is non-binding.

Penske Corp. and Mitsui plan to fund the transaction, if approved, using new equity and debt financing.

Write to Katherine Hamilton at [email protected]