Gold Coast’s AMA Group enters trading halt pending proposed acquisition, capital raising

Listed Bundall autocare company AMA Group has entered a trading halt as it proposes a significant business move.

AMA owns more than 120 panel shops. Photo: iStock

LISTED Bundall auto accessories company AMA Group has entered a trading halt ahead of an announcement about a possible acquisition and capital raising exercise.

The group, which has a market capitalisation of $658 million, had been trading at $1.215.

In a request to the ASX, AMA said it would recommence trading Wednesday morning, or after the announcement “regarding a proposed acquisition and associated capital raising”.

AMA, an automotive after-care group which has 120 panel shops, as well as accessories and other aftercare businesses in its portfolio, relocated from Brisbane to Bundall earlier this year.

It reported a 43.7 per cent profit increase after an acquisition spree last financial year when it spent $37.5 million acquiring 21 existing businesses and launched four new ones — all supported by contracts with vehicle insurers.

The AMA Group headquarters at 130 Bundall Rd.

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Last month the company announced it had entered a five-year supply agreement with RACQ, which would result in the construction of two new panel division sites.

It expanded its panel repair operations into heavy vehicles during the financial year by taking on six businesses in that sector and also logged increased earnings in its automotive components and accessories divisions.

AMA has evolved out of company Allomark, which joined the ASX in 2006.