Tuesday 27 September 2016 10:01 AM
Australia's Bapcor mounts $322.5 mln takeover bid for Hellaby
By Paul McBeth
Sept. 27 (BusinessDesk) - ASX-listed autoparts firm Bapcor has mounted a $322.5 million takeover bid for NZX-listed
Hellaby Holdings as it looks to extend its reach into New Zealand's local auto market.
The Preston, Victoria-based company is offering $3.30 a share to take full control of Hellaby, an 8.9 percent premium to
yesterday's closing price of $3.03, and has secured acceptances totalling almost 30 percent, according to a notice to
the stock exchange. Bapcor wants to delist Hellaby, and plans to sell the equipment, resources and footwear businesses
to focus on the automotive segment.
"The proposed acquisition of Hellaby, if successful, will enable Bapcor to enter the New Zealand automotive parts market
and use its scale and proven industry expertise to improve the service and range of products offered in New Zealand,
while looking for opportunities to expand, as it successfully has in Australia," Bapcor chief executive Darryl Abotomey
said in a statement. "The fact that interests representing approximately 30 percent of Hellaby’s shares have already
agreed to accept the offer speaks for itself – particularly as these interests have been long-term holders of the stock
who understand the business well."
Hellaby has been overhauling its portfolio and investment strategy under new managing director Alan Clarke, who took
over the reins last November, to exit non-core businesses and focus on its automotive and resource services units. Last
month the investment firm posted a 30 percent decline in annual profit to $19.6 million, having lowered earnings
guidance earlier this year.
Salt Funds, Accident Compensation Corp and the former Hugh Green Holdings, now called Castle Investments, have agreed to
sell to the Australian company.
"Bapcor believes that no other competing takeover is likely to be forthcoming given that certain Hellaby shareholders
have irrevocably agreed to accept this offer," it said in its takeover notice.
The Australian firm may waive the condition to achieve 90 percent, providing it gets more than half of the shares on
issue and Overseas Investment Office approval, in which case it would seek board representation to push for a shift in
Hellaby's direction.
The deal will be funded through debt from Australia & New Zealand Banking Group and A$185 million of new equity raised through a fully underwritten A$165 million
institutional placement, and A$20 million share purchase plan.
Bapcor said if it doesn't succeed in taking over Hellaby it plans to enter the New Zealand automotive market either
organically or through an acquisition.
The ASX-listed company's shares last traded at A$6.16.
(BusinessDesk)
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