Australia’s leading motoring group, Automotive Holdings Group Limited (ASX: AHG) recently received an offer by A.P. Eagers Limited (APE) under which APE offered to acquire all of the ordinary shares in Automotive Holdings that it does not already own by way of an off-market takeover bid.
Today, A.P. Eagers Limited has announced a notice of change of interests under institutional acceptance facility which was established by A.P. Eagers Limited in respect of its off-market takeover bid. A.P. Eagers Limited has announced that as at 7.00 PM on 24 April 2019, the aggregate number of AHG Shares in respect of which acceptance instructions are held subject to the Acceptance Facility and AP Eagers has a relevant interest, as a percentage of the total number of AHG Shares on issue, has changed from 28.8377% to 37.9889%.
APE recently dispatched its Bidder's Statement to AHG Shareholders regarding its offer. The AHG Board and management, together with its advisers, are currently reviewing the Offer. The company has recommended its shareholders to properly consider the Target's Statement from AHG and seek independent advice about the Offer so that they could understand the offer more clearly.
According to the AHG’s Board, there is no benefit for the shareholders in accepting the Offer at this time and they may be disadvantaged if they do accept the offer. The board has advised that if shareholders accept the Offer, they will not be able to sell their AHG shares on market.
Today, A.P. Eagers Limited has released its First Supplementary Bidder’s Statement in relation to its offer.
In another announcement on ASX, Automotive Holdings Group Limited has announced the appointment of highly experienced Director Richard England to chair the Company’s board, representing the completion of a comprehensive search process that was started after the resignation of the previous Chairman in 2018. In his 25 years of rich experience, Mr. England has served non-executive Director and Chair roles with listed and unlisted companies across retail, financial services, insurance, healthcare, innovation and infrastructure. Prior to his non-executive career, Mr. England had a long and distinguished executive career in professional services with Peat Marwick (now KPMG) and Ernst and Young and was successively a partner in those businesses for more than 12 years.
It is expected that his experience will help the Board and its advisors to consider the current unsolicited takeover offer from A.P. Eagers, the offer period for which extends to 16 September 2019. His appointment will allow the management team to focus on executing on their previously announced initiatives to improve financial performance.
In the last six months, the share price of AHG increased by 27.47% as on 24 April 2019. At the time of writing, i.e., on 26 April 2019, the stock of the company was trading at a price of A$2.350, down 1.674% during the day’s trade with the market capitalisation of ~A$792.58 million.
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