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Highlights
- Eagers Automotive signs agreement with WFM Motors to acquire its car dealership and property portfolio in Australian Capital Territory (ACT).
- The deal involves a total purchase price of approximately AU$205 million.
- Following this announcement, Eagers’ shares were spotted trading 1.277% higher at AU$14.270 per share on ASX at 10:30 AM AEDT.
The share price of Eagers Automotive Limited (ASX:APE) traded in the green on Wednesday (30 March 2022) after the company announced that it has struck an AU$205 million deal to acquire the property portfolio and the car dealership of WFM Motors in Canberra, Australian Capital Territory (ACT)
Today, the shares of Eagers Automotive were spotted trading 1.277% higher at AU$14.270 per share on ASX at 10:30 AM AEDT.
Eagers’ share price has gained 0.35% over the last one year while the stock is up 2.29% year-to-date (YTD). The company has a market capitalisation of AU$3.62 billion.
Eagers Automotive Limited is ASX-listed Australia-based leading automotive retail group that is involved in selling new and used motor vehicles.
According to the company’s announcement, the dealership group consists of brands including Toyota, Ford, Volkswagen, Jeep, Lexus, Subaru, Mitsubishi, Volvo and GMSV situated in Belconnen, Fyshwick, Phillip and Gungahlin. Besides, the dealerships operate across ten owned properties and three commercially leased sites.
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The company has said that the annual turnover of the dealership group is approximately AU$450 million and there are roughly 400 employees who will remain with the business, ensuring a smooth transition for customers, staff and Eagers’ OEM partners.
Image Source: © Yurico | Megapixl.com
Along with the satisfaction of other conditions, the transaction is also subject to shareholder approval due to the relationship between Nick Politis and the various selling entities. Politis is Eagers Automotive's board of directors member and controls the selling entities.
The company has informed today that its shareholders will be asked to approve the transaction at an extraordinary general meeting, likely to be held in June 2022. Moreover, Eagers’ shareholders will be provided with further information on the transaction prior to the meeting.
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Commenting on this development, Eagers Automotive CEO Keith Thornton said that the acquisition of this established high-quality dealership group marks an attractive entry point in the ACT region for the company. The company sees ACT as a key strategic region and identifies it as an opportunity to grow its national footprint.
“Our acquisition of the associated properties aligns with the ongoing execution of our Next100 strategy and will provide the platform to expand our parallel businesses into the ACT, including easyauto123, our national fixed price pre-owned business,” said Keith Thornton.Last week, EAGERS had announced its decision to sell Bill Buckle Auto Group business (BBAG) to Australian Motor Group for approximately AU$92 million.
