SG Fleet Group Limited (ASX: SGF) Enters Acquisition Agreement
SG Fleet Group Limited (ASX: SGF) has announced its entry into a Scheme Implementation Deed (SID) with Westmann Bidco Pty Limited, an entity controlled by Pacific Equity Partners Pty Limited, for the acquisition of 100% of its ordinary shares. The agreement stipulates a cash price of $3.50 per share, valuing SG Fleet’s equity at approximately $1,227 million.
Offer Details
The Scheme Consideration of $3.50 per share represents significant premiums, including a 31% premium to SG Fleet’s closing share price as of 22 November 2024. This acquisition reflects an FY24 EV/EBITDA multiple of 8.3x and a P/E multiple of 12.3x based on FY24 NPATA, with further projections for FY25.
Directors’ Recommendations
The SG Fleet Directors unanimously recommend shareholders approve the Scheme, subject to the Independent Expert’s report confirming that the Scheme is in their best interests. Andrew Reitzer, Chairman of SG Fleet, remarked, “The Scheme is an attractive transaction, providing significant premium to the current trading price.”
Executive Insights
CEO Robbie Blau added that the agreement with Pacific Equity Partners aligns strategically with SG Fleet’s growth trajectory, enhancing its fleet management capabilities. He believes the partnership will expand the firm’s mobility solutions, ultimately benefiting their customer base across various markets.
Conditions and Next Steps
The Scheme is fully funded and subject to customary conditions, including regulatory approvals and shareholder consent. A Scheme Meeting, where shareholders will vote on the proposal, is anticipated for March 2025. The major shareholder, Super Group Limited, is expected to convene a meeting in February 2025 to discuss the scheme.
Future Outlook
SG Fleet is set to progress with detailed planning for the upcoming Scheme Meeting, wherein shareholders will have the opportunity to weigh in on the acquisition. The company anticipates completing the acquisition in the first quarter of 2025, pending approvals and the successful execution of outlined conditions.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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