Bapcor has lifted its takeover offer for NZX based rival, Hellaby Holdings and told the market there would be no more price rises.
Bapcor told the NZX and ASX yesterday it would increase its offer price from $NZ3.30 to $NZ3.60 a share.
This price was at the bottom of the $NZ3.60 to $NZ4.12 valuation range provided by Grant Samuel in its independent report on Hellaby.
Bapcor said more investors, which included Accident Compensation Corporation (ACC), Pengana Capital and Aspiring Asset Management, had committed to accept the new offer, boosting acceptances to about 40% issued capital of Hellaby. But the independent directors of Hellaby said Bapcor was still being too cheap and demanded a 18¢ NZ dividend to be paid to its shareholders before they will give the deal the green light.
Bapcor chief executive Darryl Abotomey said in the statement the offer price would not be increased any further.
The company had decided to increase its price after talking to major shareholders, who said a $3.60 price would trigger their acceptance.
“Our 100 per cent cash offer provides certainty to shareholders in contrast to the risks around Hellaby’s unproven business strategy that is, in our view, increasingly being recognised as over-ambitious, Mr Abotomey said.
"Bapcor believes that retail shareholders should take confidence from the fact that large professional institutional shareholders consider our takeover offer the best way to realise value from their investment in Hellaby."
The offer’s closing date has now been extended to January 18.
Bapcor’s initial offer valued Hellaby at $NZ322.5 million but was labelled “ pportunistic” by the New Zealand company, which has claimed it is looking at significant growth over the next five years as it implements a new strategy (all targets in takeovers make similar claims).
Grant Samuel’s report was the subject of various letters to Hellaby’s shareholders from both the takeover target and Bapcor, with the latter going so far as to unsuccessfully take allegations of misleading and deceptive conduct to the Takeovers Panel.
Bapcor shares closed up 1.7% at $4.98.
