Hellaby Holdings’ independent directors have again reiterated their advice to shareholders not to sell to Australian listed auto parts supplier Bapcor.
It is Hellaby’s 120 auto part distribution outlets in New Zealand which are the target of Bapcor’s $3.60 per share, or $351.8 million, offer.
The board released guidance yesterday for Hellaby’s half year to December.
Sales were expected to rise from last year’s $378.8 million to between $383 million and $388 million and earnings before interest and tax was expected to be between $10million and $1 million, against last year’s $11.4million.
After tax profit is expected to be between $38.5 million and $39.5 million, compared with $4.7 million a year ago, which includes a one-off gain of about $34.5 million on Equipment Group’s sale.
Hellaby’s board said yesterday it believed a "carefully planned and controlled divestment process" would more likely realise the "embedded value" of the Hellaby businesses and provide value of more than $3.60 per share.
While Bapcor possesses a 40.7% stake already in Hellaby, that was mainly through lock-in agreements with institutional investors and few minority shareholders had sold to Bapcor since its offer opened seven weeks ago.
