Australian vehicle leasing and management company SG Fleet has entered exclusive negotiations with Pacific Equity Partners (PEP) following a takeover proposal from the private equity firm that values the company at around AUD1.2bn (US780.1m).
PEP’s indicative bid represents a 31% premium to SG Fleet’s last closing share price. In response, SG Fleet’s largest shareholder, Super Group, which owns a 54% stake, expressed support for the decision to engage with PEP.
“It is in the interests of all SG Fleet shareholders to engage with PEP,” the company said in a statement.
Following the announcement, SG Fleet’s stock soared by 20% to AUD3.20, reflecting optimism among investors. The proposal comes shortly after SG Fleet reaffirmed its guidance for an annual underlying profit of AUD88m to AUD95m, which would mark a 4.6% to 12% decline from the previous fiscal year.
Despite the anticipated decline, the company has shown solid performance, with underlying profit growing 17% in the fiscal year through June. This growth was driven by robust demand for its Australian novated lease offerings and increasing momentum in its UK operations.
PEP has been granted exclusive access to SG Fleet’s financial records until 29 November, giving the private equity firm time to assess its next steps toward submitting a binding offer.
SG Fleet operates across Australia, New Zealand, and the UK, managing a fleet of more than 277,000 vehicles.
