A.P. Eagers reveals plans to merge with Automotive Holdings Group

Company News

by Katrina Bullock

Motor vehicle manufacturer and distributor, A.P. Eagers (ASX:APE), is set to make a conditional, all-scrip offer to acquire all of the ordinary shares in Automotive Holdings Group (ASX:AHG).

The offer will be made by way of an off-market takeover bid with A.P. Eagers offering 1 share for every 3.8 Automotive Holdings Group shares.

A.P. Eagers says that the merged entity will be "better placed to pursue future growth opportunities through greater geographical portfolio diversification, enhanced brand portfolio diversification and a larger, more flexible balance sheet".

A.P. Eagers (ASX:APE) is trading 4.67 per cent higher at $7.62