BCA Marketplace surges at it confirms advanced talks with TDR Capital

Shares in BCA Marketplace rocketed on Thursday after it confirmed it is in advanced discussions with private equity firm TDR Capital about a possible cash offer for the company.

The FTSE 250 used vehicle marketplace, which owns WeBuyAnyCar, said TDR has offered 243p per share in cash, valuing the company at around £1.9bn. This represents a 25% premium to the stock's closing price on Wednesday.

"Having considered the proposal carefully together with its advisers, the board of BCA confirms that should TDR or an entity controlled by TDR announce a firm intention to make an offer pursuant to Rule 2.7 of the Code on these terms, the board of BCA intends to recommend unanimously that BCA's shareholders accept the offer," the company said.

BCA also provided a brief update on trading. It said the year has started well despite the continuing "macroeconomic, UK-specific economic and political challenges".

The group said its preliminary results due later this month should be in line with management's expectations.

At 1050 BST, the shares were up 21% to 236p.