Rich-lister Nick Politis boosts stake in AP Eagers amid share slump
SYDNEY rich-lister Nick Politis has beefed up his stake in AP Eagers amid a slump in the car retailer’s shares this year. The shares have fallen 25 per cent so far this year.
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SYDNEY rich-lister Nick Politis has beefed up his stake in AP Eagers amid a slump in the Brisbane car retailer’s shares this year.
Mr Politis, who is chairman of the Sydney Roosters, bought 20,000 shares in AP Eagers through his holding companies WFM Motors and NGP Investments on December 18, according to an ASX statement on Thursday. He paid $5.9674 a piece for 10,000 shares and $6.2670 a share for the balance.
Mr Politis, who also serves on the board of AP Eagers, is the company’s biggest shareholder with a 35 per cent stake after a series of share purchases.
The businessman, who last year joined Crocodile Dundee star Paul Hogan and other investors in a syndicate to buy Brisbane’s historic Queens Arms, invested $1.2 million in AP Eagers in October.
He now owns more than 69.5 million shares in the company, valued at more than $415 million.
The 105-year-old company has posted record half-yearly profits this year driven by new vehicle sales in Queensland, Victoria and Western Australia. Profit in the six months to June 30 rose 8.8 per cent to $53.7 million.
However, slowing growth in Queensland and the Northern Territory, as well as concerns about digital disruption in the auto sector, have sent the shares down almost 25 per cent so far this year.
They closed on Thursday at $5.98, up 28¢.
The stock traded at an all-time high of $12.99 in January 2016.
The company announced last month that statutory net profit before tax would be lower for 2018 than the previous year.
This is primarily due to reduced gains on the sale of non-core operations and property and also a decline in returns from the company’s investments.
The company expects to achieve a statutory net profit before tax in the range of $126 million to $130 million for 2018, compared to $135.6 million for 2017.
AP Eagers’ final results for 2018 will be released in late February.
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