Australia's FleetPartners agrees to SG Fleet's $786 million takeover 

By Reuters News

Oct 19 (Reuters) - Australia's FleetPartners FPR.AX said on Monday it had entered 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 8591.T, a consortium led by Sumitomo Corp 8053.T and Canada's Element Fleet EFN.TO, 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.

($1 = 1.4364 Australian dollars)

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