Hellaby Holdings Ltd’s independent directors unanimously recommended yesterday that shareholders reject the Bapcor takeover offer made on 21 October.
The target company statement incorporates an independent advisor’s report by Grant Samuel & Associates Ltd.
Bapcor offered $3.30/share. Grant Samuel’s valuation range is $3.60-4.12/share, which is also below the independent directors’ view of fair value.
The independent directors said Bapcor’s offer failed to reflect the full value of Hellaby and, in particular, its automotive group. They believed the automotive group had a standalone value of at least $350 million, excluding the significant synergies & other benefits that would be gained by Bapcor from a merger of the 2 businesses.
In addition, the independent directors believed the offer price didn’t fully value Hellaby’s other groups – resource services & footwear – or reflect the considerable opportunity for profitable growth under Hellaby’s recently communicated group strategy.
Hellaby will send its response to shareholders on Friday.
Attribution: Company release.