CAR has been in a trading halt after its acquisition of a 49% stake in US Trader Interactive for ~$800m as the business eyes attractive international verticals and scale, the company also has a call option to buy the balance of this business. To fund the purchase CAR is looking raise $600m through an entitlement offer at $17. After 4.30pm yesterday evening 2 leading brokers were looking for bids to place the last 5.8m shares from the $17 share price. We like the move into US online caravan, truck, equipment and motorbike space which should provide the opportunity for increased growth moving forward.
MM likes CAR into reasonable weakness when it recommences trading
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