AP edges closer to AHG majority stake

AP Eagers has increased its provisional stake in takeover target Automotive Holdings Group, the second time in less than a week, to 42.62 per cent.

AP, which is AHG’s largest shareholder, entered into an acceptance facility for approximately 15.35 million shares, which at its offer of $1.92 per share equates to around $29.47 million.

It is a 4.63 per cent rise on its provisional shareholding announced on April 26.

On April 26, AP announced it increased its provisional interest in Automotive Holdings Group by 9.15 per cent to 37.99 per cent.

BusinessNews understands the bulk of those acceptances announced on April 26 came from one long-standing group of AHG shareholders, the Wheatley family, who also have a substantial position in AP Eagers.

Today, AHG or AP did not disclose who entered into the new acceptance facility for the 4.63 per cent stake.

Last week, AHG urged its shareholders not to accept AP Eagers' conditional offer of one share for every 3.8 AGH shares until it prepared its target statement in response.

AHG warned shareholders they may be disadvantaged if they agree to sell before the “highly conditional” deal is approved and said it will release its target's statement on or before May 8.

Shares in AHG were up 0.42 per cent to trade at $2.40 each at 1.15pmAEDT.