Site menu

Search by ticker code:
Generic filters

Menu

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Bapcor (ASX:BAP) share price jumps 11% on takeover offer

The Bapcor Ltd (ASX: BAP) share price is rising after the auto parts company received a proposal.

Bapcor operates a number of auto parts businesses including Burson, Autobarn, Autopro, Midas, ABS, Shock Shop and Battery Town.

Takeover offer for Bapcor shares

After the ASX share market closed on 7 June 2024, Bapcor received an “unsolicited, indicative, conditional and non-binding” proposal from private equity outfit Bain Capital to buy all of the Bapcor shares.

The offer is $5.40 cash per Bapcor share, reduced by any dividends paid or declared after the date of the proposal.

Bapcor’s board has decided to disclose the proposal before concluding its assessment of the offer.

The offer comes with a number of conditions including:

  • Satisfactory due diligence
  • Execution of a binding takeover agreement
  • Unanimous recommendation from the Bapcor board
  • Commitment of the Bapcor board to vote in favour of the transaction (if there is no superior proposal and a positive recommendation from an independent expert)
  • Approval by the Bain Capital investment committee
  • Regulatory and statutory approvals

The Bapcor board cautioned that, at this time, there are no guarantees an indicative proposal will be put forward by Bain Capital that will result in a binding offer, or that any transaction will eventuate.

The board also said shareholders don’t need to take any action in response to this offer and that Bapcor will keep the market informed of any material developments.

Macquarie Group Ltd (ASX: MQG) has been appointed as the financial adviser and Allens has been chosen as the legal adviser.

Final thoughts on the Bapcor share price

Investors clearly like the news, with Bapcor shares up more than 11% in initial response to the offer. However, the current level of $4.86 is still significantly below the offer price of $5.40, so the market isn’t convinced the offer will proceed to a takeover at this stage. There are a lot of conditions that still need to be satisfied.

If I were a shareholder, I’d wait before selling. This is an opportunistic time to offer to buy Bapcor whilst it’s suffering during tough retail conditions, so it’s possible the business could recover by itself, or Bain may offer a firm proposal that could lead to a higher share price.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content