Bapcor insists no dividend payment

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Bapcor has accused the independent directors of Hellaby Holdings of overreaching in their guidance to shareholders after they sought a further dividend payment before they'd back a sweetened takeover offer.

The Australian auto-parts company raised its offer to $3.60 a share from $3.30 on Monday, but said it would not increase its price further.

However in response, the independent directors responded that they believed the revised terms of the offer, "should also allow for the payment of a dividend, in addition to the cash offer price, to allow shareholders to benefit from both the earnings generated in the half year which has now almost completed and the large capital gain on the sale of the Equipment Group," chairman Steve Smith said in a statement.

"The board has determined a dividend of 18 cents per share would allow maximum use of imputation credits which would otherwise be lost."

Darryl Abotomey, chief executive of Bapcor said, "Unfortunately, Hellaby independent directors' unrealistic views on what Hellaby shares are worth continues to mean that they overreach in their guidance to shareholders. Their request for additional consideration via an 18 cent per share dividend is another example of that."

"As part of our discussions with the Hellaby Chairman last week, we made it very clear that our views on value meant that the maximum consideration to shareholders was $3.60. We gave them the option that this could be delivered either by an offer price of $3.42 in cash per share payable by Bapcor, plus an 18 cent per share dividend; or $3.60 in cash per share payable by Bapcor," he added.

Abotomey insisted that the $3.60 in cash was Bapcor's final offer.

Shares in Hellaby have risen 0.6 percent or 2 cents to $3.46. They've risen 17 percent since the start of the year. They were trading at $3.03 before the takeover offer was announced.