Hopkins to take charge at AMA

09/11/2018 - 14:21

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National automotive services business AMA Group has struck a $68 million deal with new investors, which includes a big share selldown by management, after Perth-based Andrew Hopkins became the company’s chief executive.

Hopkins to take charge at AMA
Andrew Hopkins (right) will replace Ray Malone as chief executive.

National automotive services business AMA Group has struck a $68 million deal with new investors, which includes a big share selldown by management, after Perth-based Andrew Hopkins became the company’s chief executive.

AMA has issued 10 million new shares at 95 cents each to raise $9.5 million, while outgoing chairman Ray Malone, Mr Hopkins and other management have agreed to sell 62 million shares at the same price.

Three new investors - AustralianSuper, Myer Family Investments and Colinton Capital Partners - will buy all of the shares.

Under the deal, Mr Malone will sell a $38 million stake, while the remaining shareholders, including Mr Hopkins, will offload about $20.9 million worth of AMA shares.

Following completion of the deal, AustralianSuper is expected to be the company’s largest shareholder with a 9.67 per cent stake.

Colinton will hold up to 2.23 per cent while Myer is set to acquire up to 1.49 per cent.

AMA said proceeds from the $9.5 million share placement would be used to meet working capital needs of the business.

In conjunction with the sale of their securities, Mr Malone, Mr Hopkins and the participating members of the management team have entered into escrow arrangements in relation to their retained shares.

“The transactions neatly solve the challenge posed by the significant shareholding of mine, Andrew Hopkins and the panel repair business management team while also providing the company with the working capital needed to expand its new procurement business,” Mr Malone said in a statement to the ASX.

The news comes two weeks after the company announced Mr Hopkins would become chief executive, replacing Mr Malone, following the company’s annual meeting on November 22.

Mr Hopkins became a major shareholder two years ago after striking a deal for AMA to buy his Gemini panel beating business for $100 million.

Since then he has been a director of AMA and led the panel beating division of the company.

Mr Malone will transition from non-executive chairman to non-executive director over the next nine months.

Colinton Capital partner Simon Moore has been appointed as deputy chairman.

 

 

 

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