Australian autoparts company Bapcor has increased its takeover offer price for Hellaby Holdings, prompting more institutional investors to accept the deal.
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The offer for the investment firm has been raised by 9 percent to $3.60 from $3.30, with the Accident Compensation Corporation, Pengana Capital and Aspiring Asset Management - which together hold about 10 percent of the company - agreeing to sell at the higher price.
Bapcor now has acceptances or commitments representing about 40 percent of Hellaby shares.
Bapcor chief executive Darryl Abotomey said the decision to increase the price was made after consultation with major shareholders, but Bapcor would not be raising its offer any further.
Hellaby's independent adviser's valuation was between $3.60 and $4.12.
"Our 100 percent cash offer provides certainty to shareholders in contrast to the risks around Hellaby's unproven business strategy that is, in our view, increasingly being recognised as over-ambitious," Mr Abotomey said.
"$3.60 per Hellaby share would also represent a 29 percent premium to the volume-weighted average price of Hellaby shares over the three months prior to the first announcement of the offer."
The offer has been extended to 18 January.