SAI Global accepts $1.1bn takeover offer from Baring

SAI Global shares have soared 30pc after its board backed a “compelling” offer from Baring Asia Private Equity.

SAI CEO Peter Mullins.

Risk management and standards compliance business SAI Global has accepted a $1.1 billion takeover offer from Baring Asia Private Equity.

In an announcement to the market this morning, SAI (SAI) said its board unanimously backed a $4.75-a-share cash bid, with the deal representing a 32.3 per cent premium over its last traded price of $3.59.

The news pushed SAI shares up 29.5 per cent to $4.65, a two-year peak and its biggest one-day rise since listing in 2003.

“Baring Asia’s proposal is compelling and represents a significant premium to SAI’s share price,” SAI chairman Andrew Dutton said.

“The 100 per cent cash consideration provides SAI shareholders with certainty of value and the opportunity to realise their investment in full for cash.

“We expect that, if implemented, the scheme will have a limited impact on SAI’s continuing operations and represents an exciting opportunity for the organisation.”

Acquirer Baring has limited Australia-facing operations despite serving as one of the largest private equity groups in Asia-Pacific, with this its first local deal of significance.

The deal remains subject to a number of conditions, including approval from the Foreign Investment Review Board.

A shareholder vote on the scheme is expected in early December, with Mr Dutton telling The Australian the deal had been well-received by analysts and investors.

“It’s been very positive from everybody we have spoken to,” he said.