Scottish Pacific is going to private equity for $612 million

Jeff J Mitchell/Getty Images

Affinity Equity Partners is paying $612 million for Scottish Pacific, a finance company which buys debt owed to companies for a discounted payment.

The scheme of arrangement at $4.40 cash a share is a 27.8% premium on the one month average of $3.44. In early trade today, the shares were up 15% to $4.32.

Scottish Pacific directors voted unanimously to recommend the offer to shareholders.

“Affinity Equity Partners’ proposal represents a significant premium to SCO’s recent share price, and entitles all SCO shareholders to receive up to 100% of the Scheme Consideration in cash which provides value certainty for shareholders,” says Chairman Patrick Elliott.

“We believe the proposal is consistent with the Board’s efforts to maximise shareholder value.”

Affinity Equity Partners is one of the largest independent private equity firms in the Asia Pacific region, advising and managing $US14 billion of funds and assets.

In 2014, Affinity bought a 35% stake in Virgin Australia’s Velocity Frequent Flyer program for $336 million.

Scottish Pacific, established 30 years ago, went into a trading halt on Thursday last week.

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