Halfords talks over £1.3bn van firm tie-up
Halfords has reportedly been approached about a possible merger with van rental company Redde Northgate to create a combined group worth more than £1.3 billion.
According to the Sunday Telegraph, the two companies held detailed discussions about a ‘nil premium’ deal, under which neither company will receive a premium on the market value of their shares.
But discussions are said to have been halted after Halfords’ board concluded the deal would have undervalued it.
Saved Northgate could make a new offer if the two sides can close the valuation gap, the Telegraph reported. It added that the Takeover Panel, which regulates such deals, was aware of discussions that have taken place in recent months.
Halfords sells bicycles and car accessories in its almost 400 stores. It has a network of more than 600 garages that provide car repairs and MOTs. Shares are up 12 percent this year, but are still half their value as of mid-2021.
Undervalued: Halfords had a market value of £512m at the end of trading late last week
Halfords had a market value of £512 million at the close of trading late last week. Saved Northgate is worth £836 million.
Both companies declined to comment.