Haversham to buy British Car Auctions for 1.23 bln stg

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March 26 (Reuters) - Haversham Holdings Plc said it would buy British Car Auctions Ltd from U.S. buyout group Clayton, Dubilier & Rice for about 1.23 billion pounds ($1.83 billion) in a cash- and-stock deal.

Haversham, which was set up to buy companies in the automotive sector, will fund the cash portion of the deal through a 1.03 billion pound share placement and a 200 million pound loan.

The company will issue 69.5 million shares to satisfy the stock portion of the transaction.

The deal is being structured as a debt-free, cash-free reverse-takeover of BCA and will create a company called BCA Marketplace Plc with a market capitalisation of about 1.17 billion pounds.

The new company is expected to list on the main board of the London Stock Exchange (Other OTC: LDNXF - news) .

BCA began in 1946 as Southern Counties Car Auctions and sells more than 12,000 vehicles a week across the United Kingdom and Europe. The company said it expected to report 2014 revenue of about 886 million pounds.

Haversham executive chairman Avril Palmer-Baunack will become executive chairman of the new company.

Spencer Lock, BCA's managing director for the United Kingdom, will take the helm as group managing director of BCA Marketplace.

($1 = 0.6712 pounds) (Reporting by Abhiram Nandakumar in Bengaluru; Editing by Maju Samuel and Simon Jennings)