Hellaby directors say their preliminary view is that the Bapcor takeover offer is opportunistic and does not represent fair value for the company and its shareholders.
The board has appointed Grant Samuel as the independent adviser to provide its views to the board and shareholders on Bapcor’s proposed takeover offer
Hellaby’s directors recommend that shareholders do not sell their shares or enter into any commitment to accept the proposed offer, pending further communication from the company.
The board has also appointed legal firm, Harmos Horton Lusk, and investment bankers, Forsyth Barr, to assist it in evaluating and responding to the proposed offer.
“Hellaby has a clear focus on growth and improving financial performance. We have recently embarked on a new strategy, under CEO Alan Clarke, with a targeted focus on two core business groups – Automotive and Resources Services,” says Hellaby chairperson Steve Smith.
“These are both highly respected market leaders operating in multi-billion dollar markets, and we believe they both offer significant long-term opportunities and value for the company,” says Smith.
“Growth strategies have been developed for each business group, focused on both organic and acquisition growth,” he says.
“While some of these are at a relatively early stage, the board considers that the strategies are likely to create significant value for Hellaby over coming years,” says Smith.
Hellaby has also appointed retail experts to oversee the restructure of its non-core Footwear Group, which it is divesting at an appropriate time.
The board has established a committee of independent directors to consider the proposed offer and to oversee Hellaby’s response obligations under the Takeovers Code.
The committee excludes non-independent directors, James Sclater and Alan Clarke (who is managing director).
The Hellaby board advises shareholders to take no action and wait until they receive a copy of the Target Company Statement before deciding to accept or reject the offer.
