FleetPartners Group (ASX) shares climbed to an all-time high on Monday after the Australian fleet management company agreed to a A$1.13 billion ($787 million) cash takeover by SG Fleet Management, marking a major development in Australia's vehicle leasing industry.
The company's Sydney-listed shares jumped 7.2% to A$5.115 by 01:54 GMT, reaching a record high as investors welcomed the acquisition agreement.
Under the binding takeover deal, SG Fleet will purchase all outstanding FleetPartners shares for A$5.30 each through a scheme of arrangement, according to a regulatory filing released by FleetPartners.
The acquisition price represents an 87.3% premium over FleetPartners' closing share price of A$2.83 on July 31, before SG Fleet submitted its initial unsolicited takeover proposal.
FleetPartners also confirmed that the agreed offer exceeds the strongest revised non-binding proposals received on September 14 by A$0.65 per share. Those earlier bids emerged from a competitive process involving multiple strategic buyers.
The FleetPartners board has unanimously recommended that shareholders vote in favor of the acquisition, provided no superior offer emerges before the transaction is finalized.
As part of the agreement, FleetPartners shareholders could receive a final dividend of up to A$0.14 per share and a special dividend of up to A$0.12 per share. However, any dividends distributed before the takeover closes will be deducted from the A$5.30 per-share cash payment.
The proposed acquisition remains subject to shareholder approval and other applicable conditions. A shareholder meeting is expected to take place in February 2027, while the companies anticipate completing the transaction in March 2027.
FleetPartners operates across Australia and New Zealand, offering vehicle leasing, fleet management solutions and salary packaging services to corporate and individual customers.
Meanwhile, SG Fleet provides fleet management and vehicle leasing services across Australia, New Zealand and the United Kingdom. The company is owned by investment funds managed and advised by private equity firm Pacific Equity Partners.
The proposed FleetPartners takeover would bring together two established fleet management businesses, potentially strengthening SG Fleet's presence in the Australian and New Zealand vehicle leasing markets.
The sharp rise in FleetPartners shares highlights investor enthusiasm for the cash acquisition, although the transaction still requires the necessary approvals before completion.
