Smartgroup (ASX:SIQ) receives takeover bid from TPG consortium

Smartgroup (ASX: SIQ) has received a buy-out proposal from a consortium comprising investments firms, TPG Global and Potentia Capital.

Smartgroup develops technologies that enable organisations to manage employees and other aspects of business, including salary packaging and vehicle fleets. The consortium made a non-binding proposal to acquire all shares in the company. 

Under the proposal, Smartgroup shareholders would receive $10.35 per share, reduced by any dividend or return of capital paid before the date of the proposal. The bid represents a premium of 31.7 per cent to Smartgroup’s closing price yesterday. 

The consortium advised Smartgroup that Aware Super will participate in the proposal as an equity co-investor. The board granted the consortium a window of four weeks to conduct due diligence and establish whether a binding transaction could be agreed. 

Smartgroup said its board would recommend shareholders vote in favour of the proposal but could not guarantee a formal offer being made to the company as the proposal remains subject to several conditions.

Smartgroup has appointed Macquarie Capital as its financial adviser and Herbert Smith Freehills as its legal adviser.

Shares in Smartgroup (ASX:SIQ) are trading 17.4 per cent higher at $9.23.