THE majority shareholder in Eagers Automotive Limited has boosted his stake to more than 27 per cent after this month buying nearly $1 million of shares.

WFM Motors Pty Ltd owner and majority stakeholder in Eagers, Nick Politis, now owns 27.27 per cent of Australia’s biggest automotive retailer.

The purchase of the shares, for about $970,500, comes after the company went ex-dividend. WFM paid an average of $13.97 a share for the 70,000 on-market purchase. The shares are now $13.30.

Mr Politis opened his recent purchases with 10,000 shares bought on March 31 at an average price of $14.21. Other purchases were made on April 1 and April 4 (10,000 shares each) and 10,000 shares each on four transactions between April 5 and 8.

The purchases lifted his stake in Eagers to 70.075 million shares valued at about $932 million.

At the end of 2021, WFM held 70 million shares in Eagers and earned it $49.63 million in dividends for the calendar year.

Mr Politis’ share purchases came as Eagers published its annual report for 2021 (it had previously announced to the stock exchange its financials for the year) showing record results.

It posted an operating pre-tax profit of $401.8 million (up from $209.4 million in 2020) and a full year dividend of 70.9 cents a share, up from 25c/share in 2020.

As reported earlier this month, Eagers plans to make a foray into the ACT after agreeing to buy a dealership group owned by a company held by Mr Politis.

Eagers will spend $205 million, subject to shareholder approval at an extraordinary meeting set for June, to buy a portfolio of franchises and properties in Belconnen, Fyshwick, Phillip and Gungahlin.

The franchises include four Toyota dealerships, as well as Lexus of Canberra, Subaru Canberra, Volvo Car Canberra and Phillip Mitsubishi, all held by WFM associate Janrule Automotive which is run by COO Mirko Milic.

There are also Jeep, Ford, Volkswagen and GMSV dealerships. They turn over about $450 million a year and employ 400 people of whom Eagers said will remain with the businesses.

The move into the ACT fits with Eagers’ Next100 strategy. In a statement to the Australian Securities Exchange (ASX), Eagers said the purchase of WFM’s assets in the ACT – a territory in which it currently has no presence – expands its retail business and its Easyauto123 used-car operation.

Eagers CEO Keith Thornton said the ACT was a strategic region that “has long been identified by Eagers Automotive as an opportunity to grow our national footprint”.

“The acquisition of this established high-quality dealership group marks an attractive entry point into this region for Eagers Automotive which offers immediate scale and scope for future growth.

“The portfolio is high performing, representing leading manufacturers and is situated in prime operating locations around Canberra.

“Our acquisition of the associated properties is consistent with the ongoing execution of our Next100 strategy and will provide the platform to expand our parallel businesses into the ACT including Easyauto123, our national fixed-price pre-owned business.”

By Neil Dowling