FleetPartners takeover battle intensifies as bids near $1b

ASX-listed FleetPartners Group has received three revised takeover proposals valuing the fleet management and leasing company at up to $993.4 million.

Japan-based ORIX Corporation and a Japanese consortium comprising Sumitomo Corporation and Sumitomo Mitsui Auto Service have each offered A$4.65 per share.

Pacific Equity Partners-backed SG Fleet has submitted a revised proposal of A$4.55 per share, following an initial bid of $3.60 per share.

All three proposals remain indicative, non-binding and conditional. FleetPartners has granted the bidders access to a further phase of due diligence after considering their prices and other terms.

FleetPartners shares jumped around 11% on September 14, trading at around A$4.59 at after reaching a 52-week high of A$4.64.The company’s market capitalisation stood at around A$980 million, with its share price up 61.6% year-to-date.

Meanwhile, Toronto-based Element Fleet Management has withdrawn from the sale process after deciding not to submit a revised bid.

Element says its initial review found the increasingly competitive process did not offer sufficient certainty of producing an acceptable risk-adjusted return.

Element chief executive Laura Dottori-Attanasio says the company continues to see strategic merit in combining the businesses.

“However, following our review, we concluded that the risk-adjusted return did not justify continuing in an increasingly competitive process,” she says.

“We will continue to invest in organic growth, evaluate strategic opportunities and return capital to shareholders where we believe doing so creates the greatest long-term value.”

Element says its withdrawal will not affect its operations in Australia and New Zealand, where its Custom Fleet subsidiary has operated since 1978.

The company manages more than 1.5 million vehicles globally and says it remains committed to growing Custom Fleet and investing in its technology, data and mobility capabilities across the region.

FleetPartners says there is no certainty that any of the approaches will lead to a binding offer or completed transaction. Shareholders have been advised that no action is required.