Australia’s Bapcor rejects Bain Capital’s $1.2 billion bid; appoints new CEO

(Reuters) – Auto parts retailer Bapcor rejected on Tuesday the A$1.83 billion ($1.23 billion) buyout offer from private equity firm Bain Capital, saying the proposal “does not represent fair value for Bapcor”.

Bain Capital had offered to buy Bapcor for A$5.4 per share in cash, representing a 23.9% premium to the stock’s June 7 close of A$4.36.

Bapcor had a market value of A$1.72 billion as of Monday’s close, according to LSEG data.

Bain Capital did not immediately respond to a Reuters’ request for comment.

In a separate announcement, Bapcor named Angus McKay as its executive chairman and chief executive officer.

The struggling automotive retailer also said its statutory net profit after tax for the second half of the year would be hit by impairment charges in the retail business.

($1 = 1.4846 Australian dollars)