Yesterday’s top stock was SAI Global (SAI), whose shares ended up more than 28% after it fell to a private equity takeover offer.
SAI directors yesterday confirmed that they had accepted a $1.1 billion takeover offer from Baring Asia Private Equity at $4.75 a share, baring a higher offer.
That saw the shares leap more than 30% to a 12 month low of $4.78 before easing to close up 28.7% at $4.62.
The board said it had unanimously backed Baring’s $4.75 a share all-cash bid in the absence of a rival offer after an independent expert recommended the proposal.
“Baring Asia’s proposal is compelling and represents a significant premium to SAI’s share price," SAI chairman Andrew Dutton said in the statement yesterday.
Mr Dutton said Baring’s offer gives shareholders "certainty of value and the opportunity to realise their investment in full for cash".
He also said the deal would have limited impact on SAI’s continuing operations.
Baring founding partner and chief executive Jean Eric Salata said in the statement that Baring plans to grow SAI’s presence globally.
The companies said they will ask SAI shareholders to vote on the deal in December and that they expect it to be completed by the end of 2016.
The offer price represents a 32.3%premium to SAI Global’s $3.59 closing price on Friday.
The $1.08 billion offer comes more than two years after a separate private equity offer from KKR and Pacific Equity Partners, who offered $1.1 billion for the company which then led to SAI putting itself up for sale.
But no acceptable offers were forthcoming and the PEP proposal fizzled out, along with interest from other players.
The shares fell 20% as PEP walked away from takeover talks.
SAI is best known to the public in Australia for overseeing the Five Ticks quality assurance standards program.
