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BAP - Bapcor Limited

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Closed down 24%. My chart-ware not working for Bapcor.
Guess this is one to more closely watch. Seems to be much dissatisfaction amongst retail investors with the board, especially the chairwoman (another example of diversity?)
A decline in the performance of the Retail business may result in an impairment of tangible and intangible assets
Click to expand...
More bad news in the pipeline?

Not Held
 
i will consider a second nibble if the dip is deep enough

i grabbed a small parcel today

my logic is more folks will repair vehicles ( and enhance them ) as the economy tightens

( i also hold SNL and SUL both of which have done well for me )
 
finicky said:
Closed down 24%. My chart-ware not working for Bapcor.
Guess this is one to more closely watch. Seems to be much dissatisfaction amongst retail investors with the board, especially the chairwoman (another example of diversity?)

More bad news in the pipeline?

Not Held
Click to expand...
The retail side is being hit hard by their competition, Bapcor struggles there. However, the commercial side has a very strong market share that includes loyal customers used to excellent service, delivery, and support. Sadly, for Bapcor, this side of the business is now under pressure, with one particular multinational company undercutting prices to grow their own slice of the commercial market.

A new business plan is required.

If Bapcor can implement a strategy that encourages customers to remain and return they will again see the share price rise. It’s happened before, about 10 years ago, it can happen again. Last time the competition ran out of steam and backed way off.
 
finicky said:
Closed down 24%. My chart-ware not working for Bapcor.
,,,
Click to expand...


1714647191332.png



‘Consumers pulling back’: Autobarn owner Bapcor in $500m wipeout​

Simon EvansSenior reporter
May 2, 2024 – 11.57am

Bapcor’s shares plunged as much as 35 per cent after the company handed down another hefty profit downgrade and flagged write-downs. More than $500 million in market value was wiped from Bapcor when a two-day trading halt was lifted on Thursday, concluding an extraordinary turn of events where CEO-elect Paul Dumbrell pulled the pin on the top job two days before he was due to start on May 1.

Bapcor, which had already downgraded profits twice in the past eight months, warned that soft conditions in its retail operations would drag net profit sharply lower in the June half. Bapcor, which runs 1100 stores across the Autobarn, Autopro and Burson brands, said net profit for the full year would be $93 million to $97 million, having booked $54.2 in the first-half.

The shares tumbled to a low of $3.76, before recovering partially, down 24.5 per cent to $4.36.

Interim CEO Mark Bernhard said consumers were cutting back on spending and he had instituted a cost-cutting program group-wide. “Trading conditions since our last update to the market have remained challenging as consumers continue to pull back on spending, primarily impacting our retail business,” Mr Bernhard said.
million in the first-half.

Citi analyst Sam Teeger said the cut in profit forecasts represented a downgrade of 18 per cent from market consensus at the mid-point. “The magnitude of this downgrade is disappointing not only because it shortly follows two recent downgrades in January 2024 and October 2023 but also as there was an expectation that this category should be relatively non-discretionary,” he said.

Citi is “concerned” about the direction of the company and its ability to recruit a capable CEO. Mr Teeger also said there was a risk of further management departures.


Mr Dumbrell stunned the board on Monday by making a last-minute decision to pull out of the chief executive role with two days’ notice. Bapcor has had four CEOs in the past two years. Mr Bernhard, a director of Bapcor since 2022, was put into the interim CEO role in early February when Noel Meehan left for personal reasons after two years.

Impairments to be confirmed​

Mr Meehan, a former chief financial officer of Penfolds owner Treasury Wine Estates, took the helm in February 2022 following internal upheaval over the ousting of long-serving CEO Darryl Abotomey, who had run the company for 10 years.

Mr Abotomey on Wednesday blamed the board and chairwoman Margie Haseltine for the downturn in the company’s fortunes. Ms Haseltine said in a statement on Tuesday it was “disappointing” that Mr Dumbrell had a change of heart.

Mr Bernhard, a former managing director of General Motors Holden’s operations in Australia, said on Thursday there may be impairments in the carrying value of Bapcor’s retail business, but that will be confirmed at the full-year results.


Fierce competition in the wholesale business was hurting pricing, resulting in “volume and margin compression”. He also noted that May and June were traditionally the strongest months for the group in its trade unit and the New Zealand operations.

Mr Dumbrell is a former V8 Supercars racing driver with a strong pedigree in retail, running the Total Tools business for Metcash for five years before agreeing in February to rejoin Bapcor.

Mr Dumbrell worked as a senior executive at Bapcor for three years in the wholesaling division from 2015, before being lured to Total Tools. In 2012, he won the prestigious Bathurst 1000 car race as a co-driver with motor racing champion Jamie Whincup.

It was a sharemarket favourite with investors during the pandemic when sales jumped as people spent up on car parts and accessories.

Not Holding

Kind regards
rcw1
 
Response to media speculation and confirmation of receipt of non-binding, indicative proposal fromBain Capital Private Equity, LP

Bapcor Limited (“Bapcor” or the “Company”; ASX:BAP), Asia Pacific’s leading provider of vehicle parts,accessories, equipment, service and solutions, today provides an update in response to recent media speculation regarding possible corporate activity involving the Company.

Bapcor confirms that after market close on Friday, 7th June 2024 it received an unsolicited, indicative,conditional and non-binding proposal from Bain Capital Private Equity, LP (“Bain Capital”) to acquire 100%of the shares in the Company (on a fully diluted basis) by way of a scheme of arrangement (IndicativeProposal).

Under the terms of the Indicative Proposal, Bapcor shareholders would receive $5.40 cash per share (adjusted for any dividends paid or declared after the date of the Indicative Proposal).

Bapcor is disclosing receipt of the Indicative Proposal in advance of the Board concluding its assessment of the Indicative Proposal.

The Indicative Proposal is also expressed to be subject to a number of conditions including satisfactory completion of due diligence, execution of a binding scheme implementation agreement,unanimous recommendation from the Bapcor Board of Directors and commitment from all directors to vote in favour of the transaction (in the absence of a superior proposal and subject to an independent expert concluding that the transaction is in the best interests of Bapcor shareholders), approval of Bain Capital’s Investment Committee and receipt of all regulatory and statutory approvals (which will include approval of the Foreign Investment Review Board, alongside any other regulatory approvals that are determined to be required).

The Board cautions that at this time there is no guarantee that the Indicative Proposal put forward by Bain Capital will result in a binding offer or that any transaction will eventuate.
Bapcor shareholders do not need to take any action in response to the Indicative Proposal at this stage.
Bapcor will keep the market informed of any material developments in relation to the Indicative Proposal in accordance with its continuous disclosure obligations.

The Board has appointed Macquarie Capital as financial adviser and Allens as legal adviser.

Authorised for release by the Board of Bapcor Limited.

i hold BAP

that would crystallize a quick and unexpected profit ( if the deal completes )
 
Odd that any bidder would pay a premium for a business with such poor and worsening fundamentals. PE is a strange thing! I guess they will load it up with debt, split it up into parts and probably make a mozza off retail investors in playing the game!
 
Rejection of non-binding, indicative proposal from Bain Capital Private Equity,

Bapcor Limited (“Bapcor” or “the Company”, ASX: BAP) refers to the announcement on Tuesday, 11June 2024 in relation to the unsolicited, indicative, conditional and non-binding proposal from Bain Capital Private Equity, LP (“Bain Capital”) to acquire 100% of the shares in the Company (on a fullydiluted basis) by way of a scheme of arrangement for $5.40 in cash per share (Bain Proposal).1

Bapcor has separately announced today the appointment of its new Executive Chair.

The Bapcor Board has considered the Bain Proposal and the outlook for Bapcor in detail.

The Bapcor Board has concluded that the Bain Proposal does not represent fair value for Bapcor, is not in the best interests of Bapcor shareholders and therefore has rejected the Bain Proposal

.– Ends –

i hold BAP

would be tempted to add more very close to $4 ( or under )
 
divs4ever said:
Rejection of non-binding, indicative proposal from Bain Capital Private Equity,

Bapcor Limited (“Bapcor” or “the Company”, ASX: BAP) refers to the announcement on Tuesday, 11June 2024 in relation to the unsolicited, indicative, conditional and non-binding proposal from Bain Capital Private Equity, LP (“Bain Capital”) to acquire 100% of the shares in the Company (on a fullydiluted basis) by way of a scheme of arrangement for $5.40 in cash per share (Bain Proposal).1

Bapcor has separately announced today the appointment of its new Executive Chair.

The Bapcor Board has considered the Bain Proposal and the outlook for Bapcor in detail.

The Bapcor Board has concluded that the Bain Proposal does not represent fair value for Bapcor, is not in the best interests of Bapcor shareholders and therefore has rejected the Bain Proposal

.– Ends –

i hold BAP

would be tempted to add more very close to $4 ( or under )
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1720483698917.png

 
JohnDe said:
It appears that Bapcor is going for growth and maintaining their Australian foundations, with the rejection of the Bain Capital offer and the announcement of a CEO

View attachment 180278
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will be interesting to see how that is achieved in the current economic climate , surely expanding the retail footprint is a poor option ( unless buying the real estate underneath as well )

but maybe grabbing up small suppliers is a path forward
 
Their retail offer is messy and they compete against themselves, the store experience especially in the Burson stores is worst I have experienced, just poor customer service and being a retail customer it seems you are second to the phone ringing.
 
brerwallabi said:
Their retail offer is messy and they compete against themselves, the store experience especially in the Burson stores is worst I have experienced, just poor customer service and being a retail customer it seems you are second to the phone ringing.
Click to expand...

Their focus is the commercial sector, workshops and other businesses requiring parts. Retail is secondary, they have never focused on the retail side even when they were the old Motor Traders.

Retail is flooded by Repco, Autobarn, SuperCheap, eBay.
 
JohnDe said:
Their focus is the commercial sector, workshops and other businesses requiring parts. Retail is secondary, they have never focused on the retail side even when they were the old Motor Traders.

Retail is flooded by Repco, Autobarn, SuperCheap, eBay.
Click to expand...
yes i also hold SNL ( 'free-carried' ) and SUL and despite all trends am doing surprisingly well in this niche ( apart from BAP which is still to prove itself

maybe the theory is contrarian , where machines/vehicles are being maintained for longer ( in tough economic times )
 
Less competition in the heavy vehicle side, SNL don't have at of pressure on their parts pricing. SUL are more diversified with retail options like BCF and Rebel.

BAP are a bit of a loner; they want to specialise as a premium supplier to automotive business, but they haven't been able to sort a consistent price structure. BAP keep shooting themselves in the foot, they offer the best service and delivery for trad customers, but their pricing system automatically adjusts every quarter, which puts their customers offside and reason to shop around and fall back onto old favourites like Repco.

Maybe the new CEO with his experience will sort BAP out. The foundations are strong, it just needs fine tuning.
 
Yes, the retail side of things is pretty poor. The local Bursons store to me, presents as if it's gone into liquidation... terrible street front, the interior is run down, not much product on the shelves etc... If that presentation was indicative of how the business runs overall, I'd be worried.
I am actually considering dumping my entire holding of BAP to put it to work somewhere else that is more stable.
 
mikedsilva said:
Yes, the retail side of things is pretty poor. The local Bursons store to me, presents as if it's gone into liquidation... terrible street front, the interior is run down, not much product on the shelves etc... If that presentation was indicative of how the business runs overall, I'd be worried.
I am actually considering dumping my entire holding of BAP to put it to work somewhere else that is more stable.
Click to expand...

A couple of weeks ago I had a conversation with someone deeply involved in the industry, he told me that Bapcor is preparing itself for sale. Going to go all out to increase sales to show off the books. Head office staff are calling clients all over the country to see how they can improve services and increase sales, local stores have been given approval to sharpen their prices for all their commercial customers, and to bend over backwards to make a sale including special pickup and delivery.
 
JohnDe said:
A couple of weeks ago I had a conversation with someone deeply involved in the industry, he told me that Bapcor is preparing itself for sale. Going to go all out to increase sales to show off the books. Head office staff are calling clients all over the country to see how they can improve services and increase sales, local stores have been given approval to sharpen their prices for all their commercial customers, and to bend over backwards to make a sale including special pickup and delivery.
Click to expand...
hmmm i only bought in recently and am still in the green , will i crystallize a profit or end up with another scrip deal

( only maybe just a divestment of the retail side )

am currently up nearly 20% on BAP
 
divs4ever said:
hmmm i only bought in recently and am still in the green , will i crystallize a profit or end up with another scrip deal

( only maybe just a divestment of the retail side )

am currently up nearly 20% on BAP
Click to expand...

I think you’re safe
 

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