SAI Accepts A$1.01 Billion Private-Equity Bid After Slump

  • Baring Private Equity offers A$4.75 a share, a 32% premium
  • SAI share price has fallen 31% from a June 2014 peak

SAI Global Ltd., the Australian standards and risk management company, accepted a A$1.01 billion ($769 million) takeover offer from Baring Private Equity Asia following a slump in its stock.

Shareholders in SAI Global will receive A$4.75 a share in cash, 32 percent more than the stock’s closing price on Sept. 23, the Sydney-based company said in a statement Monday.

Directors of SAI unanimously recommended the proposal and the company ended a strategic review of its assurance business. SAI has tumbled 31 percent from a June 2014 peak of A$5.20. That was weeks after the company disclosed a conditional takeover proposal of as much as A$5.25 a share from Pacific Equity Partners Pty.

“The 100 percent cash consideration provides SAI shareholders with certainty of value and the opportunity to realize their investment in full for cash,” SAI Chairman Andrew Dutton said in Monday’s statement.

Shares in SAI jumped 31 percent after the agreement to A$4.70 at 11:26 a.m. in Sydney.

Baring Asia currently owns about 4.3 percent of SAI, according to the statement. 

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