CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

GUD Holdings offers discounted share placement for buying APG

By Mensholong Lepcha

06:57, 30 November 2021

Car parts in a factory
Car parts in a factory – Photo: Alamy

Australian automotive parts manufacturer GUD Holdings will acquire automotive and lifestyle accessories maker AutoPacific Group (APG) for a deal worth AUD744.6m ($529.85m).

GUD Holdings called for a trading halt on Tuesday as the company announced a $405m equity raising plan in order to fund the acquisition.

The company said it will raise funds by offering 39 million new shares, representing 41% of existing shares on issue.

Discounted placement

All shares under the equity raising will be offered at AUD10.40 per share, representing a discount of 13.5% to its last close of AUD12.03.

GUD Holdings added that the rest of the APG acquisition will be funded by AUD282m in debt and AUD75m in new shares issued to the vendor.


0.63 Price
-0.110% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


43,891.95 Price
-0.350% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


15,920.40 Price
+0.350% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 1.8


2,021.58 Price
+0.130% 1D Chg, %
Long position overnight fee -0.0197%
Short position overnight fee 0.0115%
Overnight fee time 22:00 (UTC)
Spread 0.50

The company said it expects the APG acquisition to generate AUD80m to AUD84m earnings before interest, taxes and amortisation (EBITA) in calendar year 2022. Net synergies of about AUD7m per annum is expected from the deal, GUD Holdings added.

Trade resumes on Wednesday

GUD Holdings said it expects pro forma 31 December 2021 net debt/EBITDA of 2.5 times, which is expected to lower to below two times by 31 December 2022.

The company added that it remains confident to deliver previously stated guidance for fiscal year 2022.

Shares in GUD Holdings will resume trading on 1 December.

Read more: Macquarie Group (MQG) flags Read more: Macquarie Group (MQG) flags $1.57bn hit on banking reforms.57bn hit on banking reforms

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading