SG Fleet Group (ASX:SGF) has received a non-binding, indicative proposal from Pacific Equity Partners (PEP) to acquire all outstanding shares in the company at $3.50 per share. The offer represents a potential premium for shareholders, though specific figures have not been disclosed.
Shares in SGF are up 23.22% at $3.29 on the back of the news.
The SG Fleet board, in consultation with its advisers and its largest shareholder, has granted PEP a period of exclusivity until 29 November 2024. This exclusivity will allow PEP to conduct due diligence and work towards presenting a binding offer. Concurrently, both parties will negotiate a scheme implementation deed to outline the terms of a potential transaction.
SG Fleet is a Sydney-based vehicle fleet management and leasing company, providing services such as vehicle procurement, financing, and fleet maintenance. It serves corporate, government, and small business clients in Australia, New Zealand, and the UK. The company leverages technology to streamline operations and enhance efficiency in fleet management.
Pacific Equity Partners is a private equity firm with extensive experience investing in Australian and New Zealand businesses across diverse sectors. Known for its strategic expertise, PEP typically focuses on long-term growth and operational improvements.
SG Fleet has engaged BofA Securities as its financial adviser and Gilbert + Tobin for legal advice. The company emphasised that there is no certainty the proposal will result in a transaction and any agreement would require board, shareholder, and regulatory approvals.
Stock Watch host Chris Pedersen last looked at SG Fleet Group in July.