Shares in SAI Global board accepted a $1.1 billion takeover offer of the quality standards and information services company.
SAI said its directors had unanimously decided to recommend the $4.75 a share all-cash bid from Baring Asia Private Equity, valuing the company at $1.08 billion.
The offer price represents a 32.3 per cent premium to SAI Global’s share price.
“Baring Asia’s proposal is compelling and represents a significant premium to SAI’s share price,” SAI Chairman Andrew Dutton told shareholders.
“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.”
Shares in the company climbed as much as 33.1 per cent after the announcement, hitting an intra-day high of $4.78 before ending the day up $1.03 or 28.7 per cent at $4.62 – within touching distance of the offer price.
The takeover bid follows the company’s decision in July to put its quality assurance business up for sale after receiving several offers.
That unit, which provides quality assurance, testing and certification services to worldwide customers in the food, consumer goods and agriculture industries, was expected to fetch up to $400 million, according to media reports.
SAI Global, which was spun out of the not-for-profit Standards Australia and listed in 2003, also provides risk management and property services to clients worldwide.
Hong Kong-based Baring’s offer also comes two years after a failed $1.1 billion takeover proposal for the company by a private equity consortium of KKR and Pacific Equity Partners.
The deal will be subject to a number of conditions, including approval from the Foreign Investment Review Board.
SAI has appointed KPMG as independent expert to evaluate whether the offer is in the best interests of its shareholders.
A shareholder meeting to vote on the proposal is expected to be held in early December, the company said.