Bapcor Ltd

BAP: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$9.80	Kzcwd	Bbpygmjpl

Bapcor: Bain Offer Looks Too Cheap

Angus Hewitt

Jun 11, 2024

Bain Capital is looking to pick up Bapcor on the cheap. While the private equity outfit’s nonbinding, indicative proposal of AUD 5.40 per share is 19% above the undisturbed closing price on June 7, 2024, it’s 29% below our unchanged AUD 7.30 per share fair value estimate. We think Bain is looking to capitalize on share price weakness following a softer performance in the retail business and management tumult. The proposal is highly conditional and subject to due diligence, unanimous support from the Bapcor board, and regulatory approvals—including from the Foreign Investment Review Board. Bapcor’s board is assessing the offer.

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