Bapcor (BAP AU): Distressed Play In Need Of Distressed Buyer
After Bapcor (BAP AU) guided weaker FY24E numbers, Bain tabled a A$5.40/share indicative Offer on the 11th June 2024. Bapcor summarily rejected terms on the 9th July.
Since that rejection, Bapcor’s share price has cratered 87% following repeated earnings downgrades plus a heavily discounted equity raise this past February.
Tanarra and Spheria remain steadfast in their holdings; but AustralianSuper has now exited. At these distressed levels, you can envisage a PE outfit running a ruler over the company
The Trade:
Bapcor remains the dominant player in this space.
Ops may benefit from being taken private by a special sits fund.
However, this is one stock I would not aggressively seek exposure in.
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