Bapcor closes in on 50% control of Hellaby

Bapcor chief executive Darryl Abotomey

Bapcor CEO Darryl Abotomey on why his company won't support a Hellaby dividend.

0
0:00 0:10

ASX-listed auto-parts company Bapcor is creeping closer to control of Hellaby Holdings, building a 47.5% stake according to its latest disclosure this morning.

Bapcor had 46% of Hellaby as of its previous disclosure on December 21. Under its takeover offer made in October, it wants to buy up to 90% of Hellaby at $3.60 per share, a threshold which would let it enforce mop-up provisions to take the company private.

Last week, Bapcor said it may waive the 90% condition, making its offer conditional on it getting acceptances for 50% of the voting rights, which it says it's confident of achieving, and its board will consider that option in early January.

As of the latest disclosure, it has conditional acceptances for a further 1.43 million shares, or about 1.5 %, based on the offer becoming unconditional. In its previous disclosure it had conditional acceptances for 3.75% of the shares.

Hellaby's board has advised shareholders not to accept the offer, which it says undervalues the company. Bapcor lifted its offer to $3.60 this month from the initial $3.30 bid, but said it would not increase the price further despite Hellaby's directors seeking an additional 18 cents per share dividend.

The Hellaby board has provided first-half guidance for profit of up to $39.5 million, which includes a one-off $30 million gain from the sale of its equipment group.

The company has promised a special dividend if the offer fails. 

Bapcor's chief executive Darryl Abotomey said the guidance was disappointing, profit would be between $4 million and $5 million, compared with $4.7 million a year earlier, once one-off gains were excluded.

Hellaby shares last traded at $3.50, and have gained 19% this year, while ASX-listed Bapcor last traded at $A5.88, up 40% this year.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7048 0.0004 0.06%
AUD 0.9244 0.0015 0.16%
EUR 0.6487 -0.0007 -0.11%
GBP 0.5619 -0.0009 -0.16%
HKD 5.4738 0.0029 0.05%
JPY 77.6680 -0.1840 -0.24%

Commods

Commodity Price Change Time
Gold Index 1248.5 1.160 2017-03-24T00:
Oil Brent 50.9 0.270 2017-03-24T00:
Oil Nymex 48.0 0.320 2017-03-24T00:
Silver Index 17.8 0.160 2017-03-24T00:

Indices

Symbol Open High Last %
NZX 50 7073.8 7101.1 7073.8 -0.16%
NASDAQ 5839.3 5858.9 5817.7 0.19%
DAX 11957.6 11987.6 12064.3 -0.96%
DJI 20674.5 20718.3 20656.6 -0.29%
FTSE 7336.8 7336.8 7336.8 -0.82%
HKSE 24235.7 24434.9 24358.3 -0.68%
NI225 19071.2 19086.9 19262.5 -1.44%
ASX 5753.5 5753.5 5753.5 -0.12%