SG Fleet Group Limited (ASX: SGF), Australia’s largest fleet management and leasing company, is currently in discussions with Pacific Equity Partners (PEP) over a potential buyout. PEP has submitted a non-binding and indicative proposal to acquire all shares in SG Fleet at $3.50 per share. The board of SG Fleet has granted PEP a period of exclusivity until 29 November 2024 to conduct due diligence and negotiate a binding offer.
SG Fleet, which became the market leader after acquiring LeasePlan in 2021, has been integrating LeasePlan customers into its systems. Its operations span Australia, New Zealand, and the United Kingdom. The company manages fleets for major government entities, including those in New South Wales, the Australian Capital Territory, Tasmania, and the Federal Government.
Founded in 2006 with the acquisition of Fleet Australia from the Commonwealth Bank, SG Fleet has grown through strategic acquisitions aimed at achieving operational scale. Its major shareholder, Super Group, indicated earlier this year an interest in selling its stake. It’s also worth noting that several key executives from SG Fleet’s formation in 2006 remain significant shareholders.
While the proposal reflects PEP’s confidence in SG Fleet’s growth potential, shareholders have been advised that there is no certainty the indicative offer will lead to a transaction. Any agreement would require board, shareholder, and regulatory approvals.
SG Fleet’s board, with advisors BofA Securities and legal firm Gilbert + Tobin, is reviewing the proposal in consultation with its largest shareholder. Updates will be provided as discussions progress.
This development signals a transformative period for the industry as it continues to tiptoe through the convergence of multiple technologies and the transition to electric vehicles.
