Halfords talks over £1.3bn van agency tie-up

On Nov 20, 2023

Updated: 08:12, 20 November 2023

Halfords has reportedly been approached over a doable merger with van rent agency Redde Northgate to create a mixed group price of greater than £1.3billion.

The two corporations held detailed talks a couple of ‘nil premium’ tie-up – through which neither agency receives a premium to the market worth of their shares – based on the Sunday Telegraph.

But the discussions had been mentioned to have been deserted after the Halfords board concluded the deal would have undervalued it.

Redde Northgate might launch a recent bid if the 2 sides can shut the hole on valuation, the Telegraph reported. It added that the Takeover Panel, which governs such offers, was knowledgeable of the discussions that came about over the previous few months.

Halfords sells bicycles and automotive equipment at its almost 400 shops. It has a community of greater than 600 garages offering automotive repairs and MOTs. Its shares are up 12 per cent for the 12 months thus far however are nonetheless half their worth in mid-2021.

Undervalued: Halfords had a market value of £512m as of the close of trading at the end of last week

Undervalued: Halfords had a market worth of £512m as of the shut of buying and selling on the finish of final week

Halfords had a market worth of £512m as of the shut of buying and selling on the finish of final week. Redde Northgate is price £836m.

Both companies declined to remark.

Some hyperlinks on this article could also be affiliate hyperlinks. If you click on on them we might earn a small fee. That helps us fund This Is Money, and hold it free to make use of. We don’t write articles to advertise merchandise. We don’t permit any industrial relationship to have an effect on our editorial independence.