☕️ Reving up Bapcor

Good morning.

Bain Capital has lobbed a cheeky $1.83b bid for the wayward automotive parts retailer, Bapcor. After the board gave former long-serving CEO Darryl Abotomey the boot in late 2021 for a more "contemporary" management style, the company lost its spark.

Now, Bain is sniffing around like a savvy car enthusiast at a garage sale, hoping to snatch up a bargain at $5.40 per share and betting it can rev up Bapcor's engine.

Co-founder Garry Johnson isn’t buying it, calling Bain’s offer "below fair value". Yet, shares leapt 14% on the news, closing at $4.97, far from its mid-September highs of over $7. A clear sign we should grab the popcorn!

🏆 LOI Subscriber #TBD

Market movers

Rumblings of a possible move by Gina Rinehart sent Strike Energy shares soaring over 13% on Tuesday, with the iron ore queen reportedly eyeing a buyout of the now $615m company.

With a stake just below 5%, Rinehart’s Hancock Prospecting is already in the game, and the appealing control of Strike’s Western Erregulla operations has caught her eye.

The project is reportedly ready for a final investment decision in the third quarter and lacks assets with remediation liabilities. If WA Premier Roger Cook approves onshore gas exports, Rinehart could turn her modest holding into a significant gas empire.

The quick sync

• Former OpenAI employee warns profit push endangers AI safety as ChatGPT expands to Apple devices. (Capital Brief)

• Investors are losing interest in BNPL companies as debit card use slows (Capital Brief)

• McGuigan owner, Australian Vintage, seeks $20m to tackle wine glut and balance sheet woes (AFR)

• Queensland eyes bet on $34b toll road windfall to fund Brisbane tunnel (AFR)

• Apple to expand BNPL options with ANZ integration for iPhone users (AFR)

Trading floor

M&A

• Bain Capital has approached former Bapcor CEO Darryl Abotomey about being involved in its $1.83bn bid for ASX-listed Bapcor. (AFR)

• Canada Pension Plan Investment Board, Blackstone, and an IFM Investors and DigitalBridge partnership have submitted non-binding indicative offers for AirTrunk. (AFR)

• Swoop Holdings has sold its wholesale voice business, VoiceHub, to Gold Coast-based telco Pivotel for $9m. (BNA)

• Saint-Gobain has received approval from Australia’s Foreign Investment Review Board for its $4.3bn takeover bid of CSR. (AFR)

• Many bankers are hopeful that QBE will acquire Beazley Insurance due to Beazley's strong cyber security capabilities and the familiarity of QBE's current boss, Andrew Horton, with the business. (Capital Brief)

• The Daily Edited (tde.) has been revived by its owner, Marquee Retail Group (MRG), which emerged from voluntary administration through a Deed of Company Arrangement (DOCA). (Startup Daily)

• AGL Energy will invest in UK-based OVO Energy’s Kaluza smart energy platform and deploy its technology to streamline billing operations for Australian customers. (Capital Brief)

Capital Markets

• Farm Pride Foods is cutting costs and expediting a $6.17m capital raising due to the impact of Avian Influenza on its Victorian sites. (BNA)

VC

• Harrison.ai, an AI start-up backed by Sonic Healthcare and Ramsay Health Care, is preparing for a $100m-plus Series C funding round and has begun discussions with potential investors. (AFR)

• Atticus has secured $10.84m in its first external raise from VCs Blackbird and Skip Capital. (Startup Daily)

• Agtech startup Farmbot has raised $4.6m in a bridge funding round, exceeding its initial $3m target. (Smart Company)

• Bridgit has secured a $125m debt facility from a global bank, supporting an additional $500m annually in residential property finance. (Capital Brief)

People moves

• TPG hires former Telstra CEO Andy Penn to lead its $1.5 bn Emerging Companies Asia Fund. (AFR)

• Mercury NZ CEO Vince Hawksworth will retire in August and be succeeded by current executive general manager Stew Hamilton. (Capital Brief)

• Azure Capital hires KPMG's Nick Combes to establish a Melbourne office. (AFR)

• Nine Entertainment marked the end of an era last week as its long-standing chairman Peter Costello stepped down. (The Australian)

Watercooler