Bapcor Ltd
Concludes the divestment of Discontinued Operations: Bapcor Ltd.’s (ASX: BAP) stock rose slightly and then fell by 0.179% on April 05, 2018 after the company concluded the divestment of discontinued operations with the signing of an agreement for the sale of its New Zealand based business, TBS Group Pty. Ltd.
The sale price of TBS has been fixed at NZ$35.0M on a cash free debt free basis and the completion of the deal is expected to occur in mid-April 2018. However, $2.5M of the sale proceeds are deferred until September 2018 and this is subject to certain conditions. Moreover, with this move the company has concluded the divestment program of assets disclosed as discontinued operations relating to the Hellaby Holdings Ltd. acquisition in January 2017 and the divestment program included the divestments of Hellaby Footwear and Contract Resources that were concluded in the first half of FY2018. The group’s total proceeds related to the sale of discontinued operations have been said to be NZ$99M.
On the other hand, BAP has targeted to open first Asian store by May 2018. The company also expects 30% NPAT growth in FY 18 compared to FY 17. Meanwhile, BAP stock has fallen 1.58% in three months as on April 04, 2018. Group’s Chairman, Mr Robert McEniry, has also tendered his resignation from the Bapcor Board due to a serious health issue; and Mr Andrew Harrison has been appointed as its Chairman effective April 04, 2018.
It is worth noting that the group’s ASX market capitalization has grown from $300 million to about $1.6 billion in four years, and BAP is now Australasia’s leading supplier of automotive aftermarket parts, accessories, equipment and services, that aims to expand its reach into Asia now. We maintain a “Speculative Buy” recommendation on the stock at the current price of $ 5.590.
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Group’s Strategic Targets (Source: Company Reports)
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