The market may be a sea of red on Wednesday but that hasn't stopped the Peter Warren Automotive Holdings Ltd (ASX: PWR) share price from racing higher today.
In morning trade, the car dealership company's 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.
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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 yesterday's 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 today's gain, the Peter Warren Automotive share price is trading largely flat year to date.
