The Bapcor Ltd (ASX: BAP) share price is having a tough time on Tuesday.
In morning trade, the ASX 200 stock is down 4% to $4.85.
What's going on?
Investors have been hitting the sell button today after the auto parts retailer released a couple of announcements.
This first announcement, which isn't the reason for the decline, revealed that Bapcor has finally appointed its new leader.
According to the release, Angus McKay has been named as Bapcor's new executive chair and chief executive officer. McKay will take the reins next month on 22 August 2024.
The release notes that the company's new CEO has more than 30 years of executive experience with a proven track record of improving operating performance and increasing shareholder value over a range of industries both nationally and internationally.
Most recently, since 2016 Angus McKay led 7-Eleven Australia through a period of significant strategic focus. This includes through the implementation of new operating models both in stores and in the organisation's supply chain. Bapcor highlights that he improved profitability by embedding strong financial control and operational discipline as well as transforming culture and sustainability practices.
Prior to that, Angus McKay was the CEO of The Skilled Group, managing director of Pacific National Rail, and the chief financial officer of Asciano Limited.
Commenting on the appointment, the ASX 200 stock's chair, Margie Haseltine, said:
Angus is a proven leader with extensive experience. Throughout his career he has brought a strategic approach to expansion and operational efficiency. Along with his focus on cultural change, Angus is well placed to drive results in Bapcor's strategic endeavours and in turn for Bapcor's shareholders.
Why is this ASX 200 stock falling?
The reason for the weakness today is news that Bapcor has rejected the unsolicited, indicative, conditional, and non-binding proposal from Bain Capital Private Equity that was announced last month.
Bain Capital Private Equity offered to acquire 100% of the shares in the ASX 200 stock (on a fully diluted basis) by way of a scheme of arrangement for $5.40 in cash per share.
Commenting on the rejection, the company stated:
The Bapcor Board has considered the Bain Proposal and the outlook for Bapcor in detail. The Bapcor Board has concluded that the Bain Proposal does not represent fair value for Bapcor, is not in the best interests of Bapcor shareholders and therefore has rejected the Bain Proposal.
