ASX-listed autoparts firm Bapcor has mounted a $NZ322.5 million ($A307.1m) takeover bid for NZX-listed Hellaby Holdings as it looks to extend its reach into New Zealand's local auto market.
The Preston, Victoria-based company is offering $NZ3.30 a share to take full control of Hellaby, an 8.9 per cent premium to Monday's closing price of $NZ3.03, and has secured acceptances totalling almost 30 per cent, according to a notice to the stock exchange.
Bapcor wants to delist Hellaby, and plans to sell the equipment, resources and footwear businesses to focus on the automotive segment.
"The proposed acquisition of Hellaby, if successful, will enable Bapcor to enter the New Zealand automotive parts market and use its scale and proven industry expertise to improve the service and range of products offered in New Zealand," Bapcor chief executive Darryl Abotomey said in a statement.
Hellaby has been overhauling its portfolio and investment strategy under new managing director Alan Clarke, who took over the reins last November, to exit non-core businesses and focus on its automotive and resource services units.
In August, the investment firm posted a 30 per cent decline in annual profit to $NZ19.6m, having lowered earnings guidance earlier this year.
Salt Funds, Accident Compensation Corp and the former Hugh Green Holdings, now called Castle Investments, have agreed to sell to the Australian company.
The deal will be funded through debt from Australia & New Zealand Banking Group and $A185 million of new equity raised through a fully underwritten $A165m institutional placement, and $A20m share purchase plan.
Bapcor said if it doesn't succeed in taking over Hellaby it plans to enter the New Zealand automotive market either organically or through another acquisition.
The ASX-listed company's shares last traded at $A6.16.
