Once acceptances for the $3.60-a-share offer moved to a controlling stake (more than 50%) on Monday, Hellaby’s board swung from rejecting the offer, as it had done since it was launched in October, to endorsing it, as Bapcor now controlled the boardroom.
Bapcor will add Hellaby’s 120 automotive parts outlets in New Zealand to its existing 750 Australian outlets, with a likelihood it will sell off Hellaby’s two separate shoe chains in the future.
Bapcor’s market note, at the opening of the stock exchange yesterday, said acceptances had leapt from 62.2% to 71.4%. Bapcor has gone unconditional on the offer, meaning it will buy all shares offered to it, and the offer period has been extended to February.
Craigs Investment Partners broker Peter McIntyre said given the extra time available, it was "likely Bapcor will test the 90% threshold", meaning if acceptances hit 90%, Bapcor can compulsorily acquire the outstanding 10% of shares and complete a 100% takeover.
Bapcor started its tilt for Hellaby from a strong position, having "locked in agreements" with mainly institutional investors representing a 30% stake in the company.
