Join our daily newsletter At The Bell to receive exclusive market insights
- AMA Group successfully raised $178.9 million to go towards the acquisition of Suncorp’s Capital SMART business for $440 million
- The company announced it will acquire 90 per cent of Capital SMART for $440 million and ACM for $20 million
- AMA has successfully completed a $77.1 million placement
- Under the institutional entitlement offer, 88.6 million shares were issued at a price of $1.15 per share and raised $101.9 million
AMA Group successfully raised $178.9 million to go towards the purchase of Suncorp’s Capital SMART business for $440 million.
Earlier this week, the company announced it will acquire 90 per cent of Capital SMART for $440 million. AMA will also acquire ACM parts from Suncorp for $20 million.
Capital SMART is a smash repair business that repairs vehicles that have sustained low to medium collision damage.
ACM is a national automotive parts supplier selling original, recycled and independently certified parts to both the motor repair industry and the general public.
In the last few days, AMA has successfully completed a $77.1 million placement. Under the placement, 67 million shares were issued at a price of $1.15 per share.
The institutional entitlement offer (IEO) had strong support from existing shareholders, with a take up rate by eligible institutional shareholders of approximately 96.8 per cent.
Under the IEO, 88.6 million shares were issued at a price of $1.15 per share and raised $101.9 million.
New shares under the IEO will be issued on Friday, October 11.
AMA’s CEO Andy Hopkins is grateful for the strong support the company has received for the acquisition.
“The acquisition of Capital SMART represents an exciting opportunity to combine AMA’s industry leading platform with Capital SMART’s best in class capabilities in low to medium severity panel repairs,” he said.
“The management team is now focused on successfully completing and integrating the acquisition,” he added.
The retail component of the entitlement offer is expected to raise a further 36.7 million. The retail entitlement offer will open on Tuesday, October 8 and close Monday, October 21.
“The acquisition of Capital SMART represents a strategically compelling and highly attractive opportunity for our customers and shareholders,” Andy said.
AMA is a leader in the automotive aftercare and accessories market.
“We are excited to combine Capital SMARTS’s best-in-class capabilities in low to medium severity panel repairs with AMA’s industry leading platform across the smash repair market,” Andy added.
AMA is expecting an annual synergies of approximately $17 million per annum, which is expected to be fully implemented by the end of financial year 2021.
AMA Group gained 8.40 per cent on the ASX this morning and is currently selling shares for $1.32 apiece at 12:20 pm AEST.
