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Letter to the Editor
Tuesday January 2
Penske Corporation Increases Its Stake in UnitedAuto Group, Inc.
DETROIT -- Penske Corporation, UnitedAuto Group, Inc.'s controlling shareholder, has announced that it purchased 3,993,110 of UnitedAuto's common shares from the Bank of Nova Scotia at a price of $10.50 per share, or approximately $42 million.
Penske Corporation also invested $23 million in exchange for 2,139,535 newly issued common shares of UnitedAuto. With these investments, Penske Corporation, along with Penske Capital Partners and its affiliates, holds approximately 57.6 percent of UnitedAuto's common stock on a fully diluted basis.
Roger S. Penske, Chairman and CEO of Penske Corporation, commented, "The purchase of these shares reflects our strong commitment to UAG and our confidence in the company as one of the premier players in the retail automotive business. UnitedAuto is now a core investment for Penske Corporation and we expect the company will continue to grow and build shareholder value."
UnitedAuto Group operates more than 126 dealership franchises in 17 states, Puerto Rico and Brazil. UnitedAuto dealerships sell new and used vehicles and market a complete line of after-market automotive products and services.
Penske Corporation is a closely-held diversified transportation services company which includes: Penske Truck Leasing Corporation; Penske Automotive Group, Inc; Penske Auto Centers, LLC; Penske Capital Partners, L.L.C.; Penske Transportation Components, LLC; Penske Performance, Inc. and its investment in UnitedAuto Group, Inc. Penske Corporation and its subsidiaries manage and operate businesses with annual revenues approximating $10 billion and employ 29,000 people at more than 3,000 worldwide locations.
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