Eagers Automotive agrees to buy remaining 20% of BYD retail joint venture

Binding agreement announced

Kapitales Research reported on 26 October 2026 that Eagers Automotive Limited (ASX: APE) announced it had entered into a binding, unconditional agreement to acquire the remaining 20% ownership interest in EV Dealer Group Pty Ltd, the entity operating its BYD Retail Joint Venture. The transaction, as described, would give the automotive retailer full ownership of the venture by eliminating the remaining non-controlling interest. This is an agreement rather than a completed transaction; completion is an expected outcome, not a confirmed fact. ¹

Eagers' shares were last quoted at AU$18.950, up AU$0.359 or 1.936%, according to the market data cited in the Kapitales Research report. The report framed the move as a step towards consolidating ownership of the BYD retail business within the group. ¹

Funding structure and proposed share issue

Under the agreement, Kapitales Research reported that the acquisition will be funded through a combination of cash consideration and ordinary shares in Eagers Automotive. In a related Appendix 3B announcement dated 26 October 2026, Eagers Automotive disclosed plans to issue up to 1,126,779 fully paid ordinary shares as part consideration for acquiring the shares of EVDirect.com 2 Pty Ltd, the shareholder entity associated with the remaining 20% interest in EV Dealer Group Pty Ltd. ¹

The proposed share issue is scheduled for 30 October 2026, with the securities valued at approximately AU$21.10 million for disclosure purposes, Kapitales Research reported. The new shares are expected to rank equally with Eagers' existing ordinary shares and will be subject to voluntary escrow for 12 months following completion of the acquisition, subject to customary exceptions. The company stated that shareholder approval would not be sought for the entire issue, with the proposed shares to be issued using its 15% placement capacity under ASX Listing Rule 7.1. ¹

Completion timing and earnings expectations

Kapitales Research reported that Eagers Automotive expects the transaction to be completed by 31 October 2026. Following completion, the company would hold the entire interest in the joint venture entity, consolidating the BYD retail business fully within the group. ¹

Eagers Automotive expects the transaction to be 5.0% to 5.5% earnings accretive for shareholders, Kapitales Research reported. This estimate is based on pro forma underlying operating profit before tax for the 12 months ended 30 June 2026, and the company noted that the pro forma calculation includes CanadaOne earnings for the period from 1 July 2025 to 30 June 2026. These figures are unaudited, while underlying operating results represent continuing operations adjusted for significant items. ¹

The accretion figure is a company estimate, not an independently verified outcome. Kapitales Research noted that the anticipated benefit remains an estimate and will depend on the transaction's completion and subsequent business performance. ¹

What remains unconfirmed

At the time of the report, the transaction had been signed but not completed, so full ownership of the BYD retail joint venture is expected rather than assured. Kapitales Research did not report a breakdown of the cash component against the share component beyond the proposed share issue, and its article stated that all data presented was based on information available at the time of writing. Completion by the end of October 2026, the final number of shares issued and the realised earnings contribution will each require confirmation once the transaction closes. ¹