AP Eagers has tapped Morgans to offer financial advice and appointed law firm McCullough Robertson as its legal adviser for its proposed $2 billion merger with rival Automotive Holdings.
Automotive Holdings, meanwhile, is believed to be working with UBS and law firm Ashurst.
It comes as AP Eagers announced it had made an all scrip bid for Automotive Holdings Group.
AP Eagers is offering one AP Eagers share for every 3.8 Automotive Holdings share.
However, Automotive Holdings’ board is yet to meet to consider the offer.
The offer equates to $1.916 per share based on the Automotive Holdings’ closing price of $1.78 on Thursday, which is a 7.63 per cent premium.
AP Eagers currently owns 28.84 per cent of Automotive Holdings and believes the chances of a competing bid are low.
AP Eagers is backed by car yard king Nick Politis and owns and operates motor vehicle dealerships throughout Australia.
It has a $1.39 billion market value while Automotive Holdings has a market value of $590 million.
Automotive Holdings describes itself as Australia’s largest motoring group operating as an automotive retailer across Australia and New Zealand.
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