Bapcor shares jump on takeover bid
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More news: Shares in Bapcor climbed more than 10% to $4.81 after the troubled auto parts retailer confirmed it had received a takeover offer from private equity firm Bain Capital worth $5.40 per share.
Bapcor's market value has slumped nearly 30% since the company announced a profit hit and hefty asset impairments last month amid challenging market conditions.
Despite the rebound in early trading, the stock is still trading well below the offer price outlined by Bain, indicating the market expects an improved offer.
Bapcor receives Bain Capital takeover offer
The news: Auto parts supplier Bapcor has confirmed that it received a takeover offer from Bain Capital Private Equity after market close on Friday.
The numbers: Under the terms of Bain Capital's indicative proposal, Bapcor shareholders would receive $5.40 cash per share. Bapcor shares last closed at $4.36 and over the last 12 months has plunged 26.72%.
Bain Capital is a US private investment firm with around USD185 billion ($280 billion) of assets under management.
The context: Bapcor's board has appointed Macquarie Capital as its financial adviser and Allens as its legal adviser.
Melbourne-based Bapcor said the indicative proposal is subject to a number of conditions, including satisfactory completion of due diligence, execution of a binding scheme implementation agreement, and the unanimous recommendation from Bapcor's board of directors.
The company's board cautioned that there is no guarantee the indicative proposal will result in a binding offer or that any transaction would eventuate.
The source: ASX announcement
