Eagers Automotive: Expanding Their Presence in Victoria

We raise our fair value estimate for shares in Eagers Automotive by 6% to AUD 12.50 following the acquisition of Victorian dealerships at what appears to be a relatively attractive valuation. Subject to shareholder approval, Eagers is set to acquire 13 dealerships and three properties across Melbourne and the Mornington region from entities controlled by Nick Politis. As Politis is an Eagers director and 28% shareholder, shareholders need to approve the transaction at a meeting expected to be held in early 2024. Further information on the transaction will be provided in the meantime. We will follow up with a corporate action note ahead of the meeting.