Australia’s FleetPartners said on Monday it had entered into a binding agreement to be bought by Pacific Equity Partners-backed SG Fleet in a deal valuing the vehicle leasing firm at A$1.13 billion ($786.71 million), sending its shares to a record high.
FleetPartners shareholders will receive A$5.30 in cash under the agreement, representing an 87.3% premium to its last close prior to leasing rival SG Fleet’s initial bid on August 3.
Shares of the company rose as much as 7.8% to a record high level of A$5.140.
The sweetened offer tops SG Fleet’s previous A$4.55-per-share revised proposal received on September 14.
SG Fleet first offered in August to buy the New South Wales-headquartered firm at A$3.60 per share, a 27% premium. It raised its offer to A$4 apiece within a week.
The scheme permits the payment of a final dividend of up to A$0.14 per share and a special dividend of up to A$0.12 per share, the company said on Monday.
FleetPartners’ board unanimously recommended shareholders vote in favour of the scheme.
The deal follows a competitive bidding process that involved Japan’s ORIX, a consortium led by Sumitomo Corp and Canada’s Element Fleet, which withdrew its proposal last month.
FleetPartners operates one of Australia’s largest novated leasing businesses, a fast-growing segment that has benefited from tax incentives.
Reuters
