(Adds Smartgroup is granting due diligence, consortium details)
Sept 29 (Reuters) - Australia's Smartgroup (SIQ) on Wednesday said it granted exclusive due diligence to a consortium comprising investment firm TPG Global after it made an indicative buyout proposal valuing the employee management services provider at A$1.38 billion ($1.00 billion).
The deal is in the midst of booming mergers and acquisitions activity in Australia as record-low interest rates encourage institutional investors and companies to chase higher valuations.
Smartgroup said the consortium's proposal is in the best interest of its shareholders, and is granting it access to due diligence exclusively for four weeks to make a binding offer.
Under the consortium's cash proposal, Smartgroup shareholders would receive A$10.35 per share, representing a 31.7% premium to the stock's last close.
"Based on current information, the board intends to unanimously recommend that shareholders vote in favour of the proposal," Smartgroup said in a statement.
The consortium includes U.S.-based TPG Global and Sydney, Australia-based Potentia Capital, with superannuation fund Aware Super joining as a co-investor. The parties did not immediately respond to a Reuters request for comment. ($1 = 1.3778 Australian dollars)
News: SIQ UPDATE 1-Australia's Smartgroup opens books to TPG-consortium after buyout offer
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Last
$7.85 |
Change
0.060(0.77%) |
Mkt cap ! $1.065B | |||
| Open | High | Low | Value | Volume |
| $7.82 | $7.87 | $7.74 | $616.0K | 78.94K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 19 | 2570 | $7.85 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.86 | 10363 | 16 |
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| SIQ (ASX) Chart |