One APE share for every 3.6 AHG shares to create vehicle sale behemoth
Automotive Holdings Group’s (AHG’s) board has decided a six per cent improvement in the AP Eagers (APE) takeover offer is all that it can hold out for.
The all-scrip offer of one APE share for every 3.6 AHG shares, as opposed to the original 3.8 offer, was too good to refuse, a week after APE flagged it was soon to control more than half its prey.
“We are delighted the AHG board shares our view on the logic and benefits of bringing the two companies together to create Australia’s leading automotive group,” AP Eagers chairman Tim Crommelin says.
“We look forward to working with the AHG team to satisfy the remaining conditions of the offer, including obtaining ACCC and third party approvals, as quickly as possible in order to deliver the best outcome for shareholders in the merged group.”
The Australian Competition and Consumer Commission (ACCC) is presently running its rule over the now unopposed deal.
Read how the ACCC is approaching the merger of the truck dealer giants, here
AHG chairman Richard England remains in place and will stay there at least until an outcome is realised, a company spokesperson tells ATN.
“Having regard to the increased value for AHG shareholders and the reduced conditionality, the board of AHG believes that the improved offer is in the best interests of AHG shareholders, in the absence of a superior proposal,” England says.
“The improved offer provides AHG shareholders with the opportunity to continue their exposure to any future growth in AHG’s earnings and value and, if sufficient AHG shareholders accept the improved offer, the financial and strategic benefits that are expected to accrue to the merged group.”
The two companies say the merged group fully combined would have a market capitalisation of about $2.3 billion.
The ownership split would be AHG shareholders other than APE at 25.5 per cent and APE shareholders 74.5 per cent.