Hellaby break up option shows lack of confidence
Bapcor Limited
(ASX: BAP)
New Zealand Media
Release
Hellaby break up option shows lack of confidence
9 December 2016: Bapcor Chief Executive Darryl Abotomey says Hellaby’s announcement that it may consider breaking up the company will only serve to provide further uncertainty to shareholders.
“We find it extraordinary that the Hellaby Board has raised this possibility now, when they’ve had all year to consider their options since we first approached them in January.
“A break up option is an admission that they
are not confident in their growth strategy, something that
has been recognised by shareholders representing 40 per cent
of Hellaby’s shares who have already accepted our
offer.
“A break up process would likely be a long,
drawn out affair – consider the fact Hellaby has been
trying to sell their Footwear division for a very long time
– and is far from certain to deliver better value than the
option from Bapcor which is in front of them now.
“We are offering an attractive value and certainty for Hellaby shareholders - $3.60 cash per share. Hellaby shareholders are encouraged to accept now if they want to realise this attractive value for their shareholding.”
Ends
About Bapcor
Bapcor (ASX: BAP) is Australia’s
leading automotive aftermarket parts, accessories and
services business with 750 sites across Australia and a
market capitalisation as at 6 October of $1.67 billion. Led
by Burson Auto Parts, the jewel in the company’s crown,
the company employs almost 2,600 people across Australia.
Bapcor has three key business segments: Specialist
Wholesale; Trade; and Retail, which includes multi-million
dollar brands such as Autobarn, Opposite Lock and Midas. Its
trade segment supplies over 500,000 units each year to a
large distribution network of 30,000 customers. With
forecasts showing continued growth in population and the
number of vehicles on our roads, Bapcor’s goal is to
become the leading provider of aftermarket parts,
accessories and services in Australasia. For more
information please visit: http://www.bapcor.com.au
This announcement does not constitute an offer to sell,
or a solicitation of an offer to buy, securities in the
United States or any other jurisdiction in which such an
offer would be illegal. Any securities described in this
announcement have not been, and will not be, registered
under the U.S. Securities Act of 1933 (the “Securities
Act”), or the securities laws of any state or jurisdiction
of the United States. Accordingly, the securities may not be
offered or sold directly or indirectly in the United States
except pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the
Securities Act and applicable United States state securities
laws.