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Eagers Automotive Shares Jump on Plan to Fully Acquire BYD Retail Joint Venture
Eagers Automotive Ltd (ASX: APE) shares surged on Monday after the company announced a binding agreement to acquire the remaining stake in its electric vehicle retail joint venture with Chinese automaker BYD.
The stock climbed 6.8% to close at A$19.86, significantly outperforming the broader ASX 200 index, which was flat for the day.
Strategic Acquisition Details
Eagers Automotive will acquire the remaining 20% ownership interest in the joint venture, EV Dealer Group Pty Ltd, giving it full control of the operation. According to the company's statement, the transaction will be funded through a combination of cash and the issuance of new Eagers Automotive ordinary shares.
The deal is expected to be finalized by October 31, 2026. Eagers projects the acquisition will be 5.0% to 5.5% accretive to shareholder earnings, based on the joint venture's pro-forma underlying operating profit before tax for the year ended June 30, 2026. This means the deal is expected to immediately increase the company's earnings per share upon completion.
AdContext and Market Impact
This move consolidates a key component of Eagers' electric vehicle (EV) growth strategy by bringing the entire BYD retail business under its corporate umbrella and eliminating the minority interest. The full ownership allows for more streamlined operations and strategic alignment as demand for EVs continues to grow.
The announcement adds to a series of positive developments for the company. In late August, Eagers reported a record first-half result for fiscal year 2026, featuring strong revenue and earnings growth. The company has also been engaged in an on-market share buyback program, a move often interpreted by investors as a signal of management's confidence in the company's intrinsic value.
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