Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Bapcor's takeover tilt delays Hellaby boardroom refresh

Monday 10 October 2016 02:43 PM

Bapcor's takeover tilt delays Hellaby boardroom refresh, chairman Smith says

By Paul McBeth

Oct. 10 (BusinessDesk) - ASX-listed Bapcor's $322.5 million takeover bid for Hellaby Holdings has delayed the NZX-listed company's plans to freshen up its boardroom, chairman Steven Smith has told shareholders at its annual meeting in Auckland.

The Auckland-based company has delayed the appointment of two new directors, who were picked to increase Hellaby's diversity and provide experience in the resource services sector to let the current board deal with a hostile takeover they say is opportunistic and undervalues the business, Smith said. Independent director Gary Mollard intended to retire from the board at the end of today's meeting but has agreed to a temporary appointment until the outcome of the takeover is known.

"The current circumstances are such that it is appropriate to defer these director appointments, as the current board and management manage the takeover process," Smith said in speech notes published on the NZX. "The director candidates are understanding of this and remain very keen to join the Hellaby board, and to contribute to the evolution and implementation of the Hellaby strategy."

Hellaby has told shareholders to wait until they see an independent report by Grant Samuels to weigh up the merits of the $3.30 a share offer, which has secured almost 30 percent through lock-up deals with Salt Funds Management, Accident Compensation Corp and Hugh Green Holdings’ Castle Investments.

Smith said Hugh Green has been a very supportive shareholder over the past two decades, though its circumstances have changed since the death of its principal in 2012 and litigation over the control of the trust.

"It is important to note that directors take their responsibility seriously to act in good faith and the best interests of the company," Smith said. "In the current circumstances, this means to consider the interest of all shareholders, to maximise value for shareholders, and to extract full value for any assets sold."

Bapcor approached Hellaby earlier this year to buy the automotive business which was turned down, with the New Zealand company's board viewing the unit as "a very valuable and important part" of its new investment strategy, which has seen it shrink its focus to being a long-term investor in the automotive and resources services sectors.

The shares increased 0.3 percent to $3.34, above the offer price. Bapcor chief Darryl Abotomey hasn't ruled out lifting the bid.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>


Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>