PEP target SAI Global launches sale process
SAI Global, which was recently that subject of a A$1.1 billion ($1 billion takeover bid Pacific Equity Partners, has set up an open bidding process and will publish information for other potential buyers.
In a statement the Australian Securities Exchange-listed risk management and standards compliance business said a formal process was in the best interests of its shareholders. The company added that it was open to engaging with PEP and that the GP was invited to take part in the process.
Last week, PEP offered to buy all outstanding shares in SAI via a scheme of arrangement at a price range of A$5.10-5.25. This represented 23-27% premium to the 90-day volume-weighted average price and an EBITDA multiple of 12.1-12.4x based on projected earnings for 2014.
SAI audits, certifies and registers products, systems and supply chains through independent assessment to help companies reduce risk and improve product and service quality. It has three business units: information services, which provides information required to comply with regulatory standards; compliance, which puts together technology-enabled business solutions and staff training; and assurance, which covers risk management, certification and related services.
Originally part of Standards Australia, a non-governmental standards development body, the company was spun out via an IPO in 2003 and its former parent no longer holds an interest. SAI is headquartered in Australia and 61% of its revenues come from this market. North American customers account for 24%, with 11% coming from Europe, the Middle and Africa and 4% from other regions.
No detail about the alternative bidderswas given. SAI shares last closed up 1.76% at A$5.20.
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