Alternative asset management group Baring Private Equity Asia is taking over the ASX-listed SAI Global, a risk management compliance company, in a takeover valued at $1 billion.
SAI shareholders will get $4.75 in cash a share. A short time ago, the shares were trading at $4.67, up 30%.
The takeover is being done through Casmar Holdings Pte Limited, a Singapore-registered company and a wholly-owned subsidiary of the Baring Asia Private Equity Fund VI.
The SAI board of directors unanimously voted to recommend that shareholders accept the offer.
“Baring Asia’s proposal is compelling and represents a significant premium to SAI’s share price,” says SAI’s chairman, Andrew Dutton.
SAI has appointed KPMG as the independent expert on the offer.
Jean Eric Salata, founding partner and CEO of Baring Private Equity Asia, says he looks forward to growing the company.
“Already the established leader in Australia, we see a great opportunity to leverage our footprint and expertise within the industry to further enhance SAI’s client portfolio and expand its market presence globally,” he says.
SAI in August posted a full year profit of $53.1 million, a 35.1% increase on 2015.