British Car Auctions to reverse into AIM's Haversham Holdings

AIM-listed Haversham Holdings, the cash shell headed by former Stobart Group chief Avril Palmer-Baunack, is reportedly nearing agreement on a £1.2bn reverse takeover deal with British Car Auctions.

British Car Auctions, the UK's second largest second-hand car dealer, could close the deal on Thursday morning, according to Sky News.

Haversham, which raised £30m in its November AIM flotation, put out a statement last week that confirmed it was in "very advanced discussions" which might lead to a reverse takeover.

If it does take place, the reverse takeover would see £1.2bn raised from institutional investors including Aviva, Schroders and Woodford Investment Management.

Rumours have been encircling both companies for some weeks, with Haversham hotly tipped due to its intended strategy of consolidating the UK and European automotive sector.