Bapcor and Hellaby directors to meet after Bapcor secures 50% of shares

Boards planning to issue an updated recommendation to shareholders "as soon as possible."Directors of Bapcor and Hellaby Holdings are to meet on Thursday and Friday of this week, with Hellaby's board planning to issue an updated recommendation to shareholders "as soon as is practicable".

The ASX-listed Bapcor has been pursuing NZX-listed Hellaby since September when it launched a $3.30 per share offer, aiming to secure 90 percent of the shares. The independent directors of Hellaby urged shareholders not to sell, even after the price was raised to $3.60 in December.

Bapcor secured control of 50 percent of Hellaby shares on Tuesday, and waived the 90 percent condition of the takeover offer. Owning more than half of the shares in Hellaby means Bapcor has effective control over the company's future.

In a statement published on Wednesday, Hellaby said a number of conditions of the offer have yet to be declared satisfied or waived by Bapcor, meaning a lack of clarity for shareholders.

"There remains uncertainty as to whether and when Bapcor's offer will become unconditional and therefore when accepting shareholders will be paid. The offer period currently closes on 18 January 2017 however this date may be extended by Bapcor. If the closing date of the offer is further extended by Bapcor, and the conditions remain in place, accepting shareholders may face potential delays in receiving their sale proceeds," the statement said.

Hellaby's representatives will seek clarity on the remaining conditions, the timing involved and whether the offer will be extended.

Bapcor is an autoparts firm based in Preston, Victoria. Its aim in buying Hellaby is to sell its equipment, resources and footwear businesses to focus on its automotive business. Car sales in New Zealand have been hitting record levels over the last three years, due to a rapid increase in population and fast growing economy.

Shares of Hellaby had traded at $3.03 before the takeover was announced. In trading today, they've risen 0.9 percent, or 3 cents, to $3.55. Hellaby shares have gained 33 percent in the past 52 weeks.

(BusinessDesk)