Pacific Equity Partners Bids A$760.3 Million for FleetPartners

Private equity firm Pacific Equity Partners and SG Fleet have submitted an unsolicited, non-binding proposal to acquire 100% of FleetPartners Group Ltd for approximately A$760.3 million ($534.5 million). The offer, priced at A$3.60 per share via a scheme of arrangement, represents a 27% premium over the previous closing price of A$2.83.

Following the announcement on Monday, FleetPartners shares surged as much as 17% to A$3.31, marking their largest intraday percentage gain in over six years and hitting a 20-month high. The deal remains subject to due diligence, a scheme implementation agreement, and regulatory approvals from the Foreign Investment Review Board, the Australian Competition and Consumer Commission, and the New Zealand Commerce Commission.

The FleetPartners board is currently evaluating the proposal with advisers. The situation may evolve into a competitive bidding process, as Smartgroup Corporation is reportedly exploring a separate scrip-based merger proposal for the North Sydney-based leasing specialist.