The market may be a sea of red on Wednesday but that hasnât stopped the Peter Warren Automotive Holdings Ltd (ASX: PWR) share price from racing higher today.
In morning trade, the car dealership companyâs shares are up 12% to $2.82.
This compares very favourably to the All Ordinaries index, which is down a disappointing 2.7% this morning.
Why is the Peter Warren Automotive share price defying the selloff?
Investors have been bidding the Peter Warren Automotive share price higher today after the company revealed that it has a new major shareholder.
According to an initial substantial holder notice, SMA Motors picked up ~15.7 million Peter Warren Automotive shares from Quadrant Private Equity for $50 million on Tuesday.
SMA Motors paid an average of approximately $3.19 per share for the stake, which represents a sizeable 25.6% premium to where the Peter Warren Automotive share price was trading at yesterdayâs close.
Someone was clearly very keen to get a slice of Peter Warren Automotive!
What is SMA Motors?
SMA Motors is the name behind Sutton Motors, which is one of Sydney’s largest dealer groups. It operates 24 franchised motor vehicle dealership sites, covering 27 different franchises.
Why it bought the 15.7 million stake from Quadrant Private Equity remains unclear. But investors may be hoping that this leads to a full takeover approach in the near future. Time will tell if that is the case.
Following todayâs gain, the Peter Warren Automotive share price is trading largely flat year to date.
The post In a sea of red, guess which ASX All Ords share is booming 12% today appeared first on The Motley Fool Australia.
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More reading
- 5 ASX All Ords shares trading ex-dividend on Thursday
- 6 ASX shares Morgans would buy right now
- 3 ASX All Ords shares that saw major price action on FY22 results
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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