Eagers Automotive (ASX:APE) Acquires CanadaOne Auto Group
Transaction Overview
Eagers Automotive Limited (ASX:APE) will acquire all issued and outstanding shares of the holding corporation owning CanadaOne Auto Group under a share purchase agreement valued at C$2.145 billion.
Acquisition Details
The purchase price includes issuing Class B Common Shares representing 35% of the Purchaser, issuing Class C Preferred Shares valued at C$350 million, and paying cash for the remaining amount. Post-acquisition, Eagers will own 65% of Target, while the Priestner Group will hold 35%.
Conditions Precedent
The acquisition is subject to regulatory approvals under the Competition Act and Investment Canada Act, ASX approvals, and other customary conditions. Closing is expected in Q1 2026.
Termination Fee
If the transaction fails due to a breach by a party, a break fee of $20 million will be payable to the other party.
Shareholders Agreement
The Unanimous Shareholders Agreement outlines board representation, special approval requirements, transfer rights, and restrictive covenants for shareholders.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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