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SYDNEY - Repco, the largest retailer of car parts in Australia and New Zealand, agreed to a A$336 million ($383 million) takeover offer from buyout firm CCMP Capital Asia, three people with knowledge of the bid said.
Repco shareholders will get A$1.75 cash a share, 22 per cent more than the last traded price, said the people, who declined to be named before a statement is released. Trading in Repco shares has been halted since December 8 pending an announcement.
The acquisition will be the second time in five years Repco has been taken private. While a buyout group led by Macquarie Bank earned returns of more 60 per cent before selling out in 2003, the stock has since slumped 45 per cent as record petrol prices, higher interest rates and the cost of opening new stores prompted the company to twice lower its profit forecast.
Melbourne-based Repco, which has more than 430 stores in New Zealand and Australia, reported sales rose 5.5 per cent to A$909.5 million in the 12 months ended June 30, 2006.Net income slumped 43 per cent to A$20.8 million.
- BLOOMBERG
