CAR unch: shares in the automotive classifieds business spent the day in a trading halt as they look to raise a huge $1.2b to fund the acquisition of the remaining 51% of US-based Trader Interactive in a 1 for 4.16 entitlement offer at $17.75/sh. Carsales.com initially bought into the commercial vehicles business a little over a year ago in a $US624m deal with Carsales.com saying that this portion of the acquisition will be completed at a lower multiple despite the higher valuation given the strong growth in the business over the last year. The presentation also included a trading update with CAR expecting revenue growth of 16% and NPAT growth of around 27% for FY22 which are both small beats to consensus estimates.
MM is neutral CAR – a big raise at a difficult time to ask for money
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