TPG, joined by Australian PE investor Potentia and Aware Super, has lodged an indicative and non-binding offer to pay $10.35 per share, and will spend four weeks conducting a due diligence on an exclusive basis before it decides whether to make a binding transaction.
In a statement posted to the ASX, Smartgroup revealed it intends to unanimously recommend that shareholders vote in favour of the proposal, granting a superior offer is not received.
The proposal represents a premium of 31.7 per cent to the closing Smartgroup share price on 28 September and a premium 38.6 per cent to the 90-day volume weighted average price up until Tuesday.
Smartgroup has appointed Macquarie Capital as its financial adviser.
The company was listed on the ASX in July 2014. Just last month, it reported earnings growth with a strong EBITDA margin of 45 per cent to 30 June, despite ongoing business disruptions from COVID-19.
Its net profit after tax and amortisation came in at $33.5 million, an increase of 5 per cent over the half year to 30 June 2020.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
