Monday 16th January 2017
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Bapcor, the ASX-listed autoparts firm, lifted its interest in Hellaby Holdings to 56 percent from 52.5 percent after declaring its takeover unconditional and extending its offer by three weeks.
Bapcor wants Hellaby for its automotive business and plans to sell its equipment, resources and footwear businesses. The deal will give it 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.
On Friday it declared the $3.60-per-share offer unconditional and plans to dispatch funds to shareholders who have accepted within seven days. The offer now 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's independent directors had opposed the takeover, arguing it undervalued the business. In its statement, Bapcor said the company "considers that the Hellaby board should now be recommending that it is in the best interests of all shareholders to accept the Bapcor offer."
Hellaby shares last traded at $3.57 and have gained 23 percent in the past 12 months.
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