SG Fleet Group (ASX:SGF) has received an indicative, non-binding proposal from Pacific Equity Partners (PEP) to acquire all of the company’s outstanding shares at $3.50 per share. The offer represents a potential reward for shareholders, although specific figures were not disclosed.
On the back of the news, SGF shares rose 23.22% to $3.29.
SG Fleet’s board of directors, in consultation with its advisors and its largest shareholder, has granted PEP a period of exclusivity until November 29, 2024. This exclusivity will allow PEP to conduct due diligence and work towards submitting a binding offer. At the same time, both parties will negotiate a plan implementation deed to outline the terms of a potential transaction.
SG Fleet is a Sydney-based vehicle leasing and fleet management 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 United Kingdom. The company leverages technology to streamline operations and improve efficiency in fleet management.
Pacific Equity Partners is a private equity firm with extensive experience investing in Australian and New Zealand companies across multiple sectors. Known for its strategic expertise, PEP typically focuses on long-term growth and operational improvements.
SG Fleet has engaged BofA Securities as financial advisor and Gilbert + Tobin for legal advice. The company stressed that there is no certainty that the proposal will result in a transaction and any deal would require approval from the board of directors, shareholders and regulatory authorities.
Stock Watch host Chris Pedersen last looked at SG Fleet Group in July.