Sharechat Logo

Bapcor lifts interest in Hellaby to 78.4%, closing in on takeover that will herald breakup

Friday 20th January 2017

Text too small?

Bapcor, the ASX-listed autoparts firm, lifted its interest in Hellaby Holdings to 78.4 percent from 71.4 percent, edging closer to a takeover of the diversified investor it wants to break up while retaining its automotive business.

Bapcor has said it plans to sell Hellaby's equipment, resources and footwear businesses, using the remaining automotive division as a foothold in the New Zealand market, where car sales have been hitting record levels over the last three years due to a rapid increase in population and fast growing economy.

Hellaby's independent directors this week said they supported the takeover, having previously argued that it undervalued the company, after Bapcor declared its $3.60-per-share offer unconditional. The offer closes on Feb. 7.

Representatives of the two companies met last week to discuss the takeover after Bapcor gained effective control of Hellaby by securing more than 50 percent of the shares. It said Hellaby's independent directors have now provided Bapcor with "sufficient comfort around the remaining offer conditions" and these have now been lifted.

Hellaby shares last traded at $3.58 and have gained 26 percent in the past 12 months. Bapcor shares last traded at A$5.61 on the ASX and have surged 40 percent in the past 12 months. The stock is rated a 'buy' based on the consensus of three analysts polled by Reuters.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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 unchanged in local trading as markets watch US developments
Robertson's rocket for Treasury over child poverty modelling error
Green Cross community head Simon Lipscombe leaves to head Compass NZ food service group
Labour signals slow track for most contentious labour law reforms
New spray dryer planned at Waikato Innovation Park as sheep milk ramps up
Euro Corp to defend fair trading charges over steel mesh standards
Fonterra criticises Beingmate after 'extremely disappointing' earnings downgrade
Augusta lines up third property for industrial property fund
Blis cuts annual earnings guidance as impact of tough first half lingers
January 22nd Morning Report

IRG See IRG research reports