Australia-based SG Fleet Group has confirmed discussions with Pacific Equity Partners (PEP) regarding the latter’s proposal to acquire it in a deal valuing its equity at approximately A$1.2bn ($780m).
Under the terms of the indicative proposal, Pacific Equity Partners offers to buy all shares in the fleet management and vehicle leasing services provider for A$3.5 ($2.28) per share.
The consideration represents a premium of 31% to SG Fleet’s closing price on 22 November 2024.
Listed on the Australian Securities Exchange (ASX) since March 2014, SG Fleet offers integrated mobility solutions and salary packaging services.
The company operates across Australia, the UK, and New Zealand, managing more than 250,000 vehicles and employing approximately 1,100 staff.
SG Fleet operates under the sgfleet brand in Australia, New Zealand, and the UK. It also operates as the LeasePlan brand in Australia and New Zealand, serving both corporate and consumer business segments.
While the proposal remains non-binding, SG Fleet’s board has deemed it to be in the interests of shareholders to engage with Pacific Equity Partners.
SG Fleet said that its board in consultation with its largest shareholder and advisers, has agreed to grant Pacific Equity Partners a period of exclusivity. This will allow the private equity firm to conduct due diligence, propose a binding offer, and negotiate a scheme implementation deed.
This exclusivity period is set to expire on 29 November 2024.
SG Fleet has advised shareholders that no immediate action is required and emphasised there is no certainty the proposal will result in a completed transaction.
The potential transaction would require further approvals, including board, shareholder, and regulatory consents, alongside negotiation of transaction documents.
For the transaction, SG Fleet has engaged BofA Securities as the financial adviser and Gilbert + Tobin as its legal adviser.
Last year, Pacific Equity Partners also announced a A$250m ($163m) partnership with Australian electric vehicle (EV) charging hardware and software provider EVSE. This collaboration aimed to expand Pacific Equity Partners’ presence in the EV charging market across Australia and New Zealand.
