AAP Finance

AP Eagers $2.3bn takeover of AHG succeeds

By AAP Newswire

Auto dealer A.P. Eagers has succeeded in acquiring more than 90 per cent of all Automotive Holding Group shares, reaching that important threshold just hours before its offer expired.

Now that it owns 91.1 per cent of all AHG shares, A.P. Eagers can and will now compulsorily acquire the remaining AHG shares outstanding to complete its takeover.

The combined company will be Australia's largest car dealership company, with nearly 12 per cent of all new vehicle sales in 2018.

It will have over 200 car dealerships in Australia, 13 in New Zealand, and 67 new truck and bus dealership locations in Australia.

AP Eagers says the combined company will realise an estimated $13.5 million in synergies, through removing duplicated head office and corporate services costs, as well as AHG's costs associated with being a listed company on the ASX.

AP Eagers is in the process of selling Klosters Motor Group and associated real estate to family-owned Tony White Group for $106.9 million to ease concerns it would have too much market power in Newcastle and the Hunter Valley region.

At 1129 AEST, AP Eagers shares were down 1.1 per cent to $13.16, while AHG shares were up one cent, or 0.2 per cent, to $3.50.