By Scott Murdock and Rajasik Mukherjee
SYDNEY (Reuters) – Australian auto parts retailer Babcor on Tuesday rejected a A$1.83 billion ($1.23 billion) takeover bid from private equity firm Bain Capital, saying it did not fully reflect the company’s value.
The company’s shares fell about 4.3% in early trading Tuesday. Australia’s benchmark S&P/ASX200 index rose 0.65%.
Bain Capital had offered to buy Bapcor for A$5.40 per share in cash, representing a 23.9% premium to the stock’s closing price on June 7 of A$4.36.
But in a statement on Tuesday, Babcor – which operates Midas and Autobarn stores across Australia – said the offer was not in the best interests of its investors.
Bain Capital declined to comment.
Bapcor’s market value was A$1.72 billion at Monday’s close, according to London Stock Exchange data.
In a separate announcement, Babcor has appointed Angus Mackay as its chief executive officer and CEO.
The car retailer also said its statutory net profit after tax for the second half of the year ended June 30 would be impacted by impairment charges in its retail business.
“The size of these fees will be confirmed as part of the end-of-year process,” she said.
Bapcor had forecast its estimated net profit for the financial year ending June 30 to be between A$93 million and A$97 million, compared with A$125.3 million in 2023. It will announce its full-year financial results on August 21.
(1 USD = 1.4846 AUD)