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SAI Global agrees to $1b takeover bid

Monday, 26 Sep 2016 10:36:48 | Sue Lannin

The deal equates to $4.75 cash per share.

Industry standards and compliance company SAI Global has agreed to a $1 billion takeover bid from Hong Kong private equity firm Baring Private Equity Asia.

SAI Global said its directors unanimously supported the $4.75 per share cash takeover bid, which is a 32.3 per cent premium to SAI's closing price of $3.59 on September 23.

"Baring Asia's proposal is compelling and represents a significant premium to SAI's share price," said SAI's chairman, Andrew Dutton in a statement.

SAI directors unanimously recommend shareholders vote in favour of the takeover offer, with the vote to take place in December.

"We expect that, if implemented, the scheme will have a limited impact on SAI's continuing operations and represents an exciting opportunity for the organisation," Mr Dutton said.

SAI's shares rocketed 30.6 per cent to $4.69, its highest price in two years and its biggest one-day jump since listing on the Australian stock exchange in 2003.

The takeover bid requires approval from the Foreign Investment Review Board.

Baring Private is one of the biggest alternative asset management firms in Asia and advises funds with total capital of more than $US10 billion.

SAI Global sells compliance and risk products, including software to businesses, as well as company, personal and property information.

"We look forward to partnering with SAI's management team to grow the company into a recognised leader in risk management solutions," said Baring Private's chief executive Jean Eric Salata.

"We see a great opportunity to leverage our footprint and expertise within the industry."

SAI also has an exclusive publishing contract with Standards Australia, Australia's non-government, not-for-profit standards organisation, to publish Australian standards until 2023.

The takeover bid is below the $1.1 billion proposed by KKR and Australian firm Pacific Equity Partners in 2014.

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