Australian automotive aftermarket parts company Bapcor Ltd made a full takeover offer for NZX-listed Hellaby Holdings Ltd at $3.30/share today.
That’s a 14% premium to the one-month volume weighted average price, an 18% premium to the 3-month average and a 23% premium to the 6-month average.
Bapcor had lockup agreements for just under 30% of Hellaby when it made its announcement this morning, 27.2% of that with Hugh Green Group and the balance with institutions.
Hellaby long focused in its ownership on businesses that provide innovative solutions in specialised industrial services sectors, the automotive & resource services sectors in particular.
Bapcor chief executive Darryl Abotomey said: “The proposed acquisition of Hellaby, if successful, will enable Bapcor to enter the New Zealand automotive parts market and use its scale & proven industry expertise to improve the service & range of products offered in New Zealand, while looking for opportunities to expand, as it successfully has in Australia.”
Bapcor provides automotive aftermarket parts, accessories, automotive equipment & vehicle servicing, and listed on the ASX in 2014. It bought the $A275 million Metcash Automotive in July 2015 as a pillar to expansion, and has grown from an $A300 million market cap company at listing to $A1.5 billion.
The offer is conditional on 90% acceptances & NZ Overseas Investment Office consent. Bapcor expects to fully fund it through a combination of current cash holdings, debt facilities & $A185 million of new equity. It was conducting a bookbuild for the institutional placement today.
Attribution: Company releases.