Avis Europe shareholders approve Avis Budget takeover

3rd Aug 2011
Avis Europe shareholders approve Avis Budget takeover

Avis Budget Group has confirmed shareholders of Avis Europe have voted overwhelmingly to approve the proposed acquisition of the European company by the American giant.

As a result, the acquisition is expected to close in early October, subject to regulatory clearances and final court approvals, reuniting the companies for the first time in over 20 years.

Avis Budget Group also announced its lenders have approved an amendment of the company’s principal credit facility that will allow it to acquire Avis Europe as an indirect subsidiary of its existing operating subsidiary, Avis Budget Car Rental.

Based on current market conditions, this amendment is expected to allow the company to access lower-cost financing for the acquisition and to permit the Company to complete the acquisition of Avis Europe without issuing any equity securities.

“We are pleased to be making progress on all fronts toward our planned acquisition of Avis Europe,” said Ronald Nelson, Avis Budget Group chairman.

“The approval of the transaction by Avis Europe shareholders is a key milestone, and we are moving forward expeditiously on our financing strategies and integration planning.

“Our expectation that we will be able to finance the acquisition without issuing equity further enhances the attractiveness of the transaction from a financial perspective.”

Formal closing of the credit facility amendment, which has already been approved by the requisite number of lenders, is expected to occur in August.

The deal was announced in June this year, with Avis Europe shareholders set to receive 315 pence per share, valuing the company at approximately £636 million.



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