Broker Morgan Stanley is in the market seeking backers for a $165 million placement for the expanding Bapcor Ltd.
It's understood the broker was approaching funds seeking to place new shares at $5.85 each.
The offer price was a 5 per cent discount to Bapcor's last close.
It comes as Bapcor - which was known as Burson Auto Parts until only recently - seeks to buy NZX-listed Hellaby Holdings in a deal valuing the target's equity at $NZ322.5 million.
Bapcor shares went into a trading halt on Tuesday morning, ahead of the discussions with potential equity backers.
Bapcor shares are expected to resume trading on Wednesday.
From AFR
BAP Price at posting:
$6.16 Sentiment: Buy Disclosure: Held
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