Thursday, June 13, 2024

Guess which ASX 200 share just rocketed 15% on a $1.8 billion takeover offer

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The S&P/ASX 200 Index (ASX: XJO) is down 1.1% today, but you can’t blame this rocketing ASX 200 share.

Shares in the auto parts company closed on Friday trading for $4.36. In earlier trade on Tuesday, shares were swapping hands for $4.99 apiece, up 14.5%. After some likely profit-taking, shares are currently trading for $4.88, up 11.9%.

This comes after management confirmed media speculations of a potential takeover offer at a significant premium to Friday’s closing price.

Any guesses?

If you said Bapcor Ltd (ASX: BAP), give yourself a virtual gold star.

Here’s what’s happening.

ASX 200 share in takeover crosshairs

The ASX 200 share is rocketing today after reporting it had received a non-binding, indicative proposal from Bain Capital after market close on Friday.

The United States-based private investment firm is seeking to acquire all of Bapcor’s shares by way of a scheme of arrangement. This would see Bapcor shareholders receive $5.40 cash per share, adjusted for any dividends paid or declared after this proposal.

That’s almost 24% higher than Friday’s closing price, explaining why the Bapcor share price is having such a stellar run today.

Bain’s offer values the ASX 200 share, which has some 1,100 Autobarn, Autopro and Burson stores, at more than $1.8 billion.

Amid the media speculations of a takeover offer, the board said it was disclosing its receipt of the indicative proposal before concluding its assessment. The board stressed that the proposal remains subject to a number of conditions being met.

“The board cautions that at this time there is no guarantee that the indicative proposal put forward by Bain Capital will result in a binding offer or that any transaction will eventuate,” they stated.

Macquarie Capital has been appointed as Bapcor’s financial adviser and Allens as its legal adviser.

Investors in the ASX 200 share were advised they do not need to take any action at this time.

How have Bapcor shares been tracking?

Bain Capital is lobbing its bid for Bapcor after a sizeable share price retrace for the auto parts retailer.

Before market open today, the ASX 200 share was down almost 27% over the past 12 months. Though that doesn’t include the 21 cents a share in fully franked dividends Bapcor paid out over this period.

The stock has been under pressure following profit downgrades amid rising costs. The company has also struggled with its top management, with Paul Dumbrell backing out of his appointment as CEO in April, just days before he was meant to take up the helm.

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