Bapcor's frontal lobotomy
How many times have we seen a roll-up strategy go awry?
Things really have turned ugly at auto parts group Bapcor, one of the ASX's perennial widow-makers for institutional investors. Last week, it announced its second profit downgrade in three months.
Bapcor's is a crowded share register, with AustralianSuper holding 16 per cent, Australian Retirement Trust and John Wylie's Tanarra Capital both at 11 per cent, Hostplus at 8 per cent and Antipodes at 5 per cent. Each of these funds increased their stakes subsequent to management's first downgrade in July. If they liked it at $3.70, they must really love it now at $2.50!
Then there's cursedly unlucky Aware Super and Yarra Capital, both of which became substantial shareholders the day before Bapcor entered a trading halt last week ahead of the latest downgrade.
This company has been a rolling psychodrama ever since former CEO Darryl Abotomey (nickname: Frontal) was elbowed out by the board in December 2021. His successor Noel Meehan departed two years later, to be replaced by Paul Dumbrell in May 2024.