Brisbane-based AP Eagers may have won the battle for its main listed rival, Automotive Holdings (AHG) but that doesn’t mean it has been immune from the impact of the deepening slow down in the car sector.
Yesterday’s trading update was all a bit ‘after the event’ from Automotive Holdings (AHG) now that it has fallen on its knees and accepted the paper offer from its biggest shareholder AP Eagers (which owns 28.8%).
The Automotive Holdings Group (AHG) board has unanimously recommended shareholders accept the AP Eagers’ (APE) improved scrip offer of one AP Eagers share for every 3.6 AHG shares. This compares to an earlier offer of one AP Eagers share for every 3.8 AHG shares.
FY19 results were affected by accounting changes and the reclassification of refrigerated logistics as discontinued. Credit Suisse expects this will be the last time the business is reported on as a separate entity.