Australia, Main News

Blackstone’s AMA Acquisition Scuttled By The ATO

Ruling For Demerger Relief Denies Acquisition

An adverse ruling by the ATO has torpedoed plans by private equity asset manager Blackstone to finalise its purchase of the 113 body shops owned by ASX-listed AMA Group.

Via a press release, AMA Group Limited advised that it had received a formal response from the Deputy Commissioner of Taxation refusing its request for a Ruling for Demerger Relief.

In April, AMA Group Limited announced the demerger of its components, accessories and procurement business into an independently listed entity, and the purchase of the post-demerger AMA Group, which essentially included its crash repair businesses, by private equity asset manager Blackstone for $508 million.

The demerger was proposed to allow the two divisions to adopt the most suitable capital structure and focus on their fundamental proficiencies.

The AMA Board said they were disappointed with the decision, but the business has continued to perform strongly and is still on target with the market guidance released earlier in the year.

In the first half of financial year 2018, the collision repair side accounted for nearly $200 million of the group’s revenue versus $27 million of the other units.