Sharechat Logo

Takeover target Hellaby hints at possible breakup on its own terms

Thursday 8th December 2016

Text too small?

Hellaby Holdings, which is engaged in a battle to fend off unwanted suitor Bapcor, has told shareholders it could move to break up the company to realise shareholder value. 

Australian car parts company Bapcor raised its offer to $3.60 a share earlier this week from $3.30, but the independent directors of Hellaby said they could not recommend the offer unless it included an 18 cents per share dividend. Bapcor has refused this, and the Takeovers Panel has now ruled the offer price of $3.60 per share is a last and final offer. 

Steve Smith, Hellaby chairman, said the offer price still did not reflect fair value for the shares. 

“Your company has other options. We could continue under our growth strategy, communicated in May 2016, which we believe will deliver attractive long-term value to shareholders, or we too could break up the company and realise the value embedded in each group in an orderly and careful process over time."

Bapcor is planning to delist Hellaby if its takeover is successful and focus on the automotive segment. The equipment, resources and footwear businesses would be sold. 

The Australian company has the support of 40 percent of investors at $3.60 a share, and today's update from Hellaby highlights that if Bapcor controls more than 50 percent of the shares, it could become the majority shareholder. 

"If Bapcor did so, it would represent a different set of risks and opportunities for Hellaby shareholders....this scenario would pose a number of significant complexities for Bapcor as it would not be able to fully realise the synergies of complete ownership," the note to investors said. 

Bapcor requires 90 percent of shareholders for the full takeover offer to succeed. 

Hellaby shares traded at $3.03 prior to the takeover offer emerging. Late afternoon today, they up 0.3 percent on yesterday's closing price, at $3.46. They've risen 17 percent since the start of the year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls with Aussie after Westpac's RBA rate cut call
Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report

IRG See IRG research reports