Bapcor shares slip after rejection of Bain takeover bid
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More news: Shares in Bapcor slipped 1.38% to $5.01 after the troubled auto parts supplier rejected a $5.40 takeover bid by private equity firm Bain Capital saying it did not represent fair value and was not in the best interests of shareholders.
Bapcor's market value has slumped since the company announced a profit hit and asset impairments in May amid challenging market conditions and recent leadership turmoil.
Bapcor nixes Bain takeover bid and appoints new CEO
The news: Troubled auto parts supplier Bapcor has reaffirmed its profit guidance and appointed a new chief executive officer after rejecting a takeover bid by Bain Capital.
The numbers: Bapcor said it would appoint current 7-Eleven Australia boss Angus McKay as its new CEO and executive chair, starting 22 August.
Its board also rejected Bain’s non-binding bid of $5.40 a share, saying it did not represent fair value and was not in the best interests of shareholders.
Bapcor shares last closed at $5.07 and over the last 12 months has fallen 15.5%.
The company reaffirmed its full-year profit guidance of between $93 million to $97 million after hefty impairments, and said it remains confident of the long term outlook for the group.
The context: Analysts has widely considered Bain’s bid for Bapcor, which operates a network of 1100 stores across the Autobarn, Autopro and Burson brands, as too cheap.
Bapcor's market value has slumped since the company announced a profit hit and asset impairments in May amid challenging market conditions and recent leadership turmoil.
It said on Tuesday that McKay was well placed to drive results in the company’s strategic endeavours. McKay has previously served as CEO of The Skilled Group, and was chief financial officer of Asciano before that.
The sources: ASX announcement, ASX announcement
