What happen to the SAI Global Share Price?
Shares of SAI Global Ltd [ASX:SAI] gained more than 17% Monday, after the company received a takeover bid from private equity firm, Pacific Equity Partners.
Why did this happen to the SAI Global Share Price?
The takeover bid from Pacific Equity Partners values SAI Global at $1.11 billion. That’s significantly above the $902 million market valuation of the company at Friday’s close. Clearly the private equity firm sees an opportunity to wring more profits out of SAI Global, a company that has achieved steady revenue and profit growth over the past 10 years.
What now for SAI Global?
The takeover bid values the company’s shares between $5.10 and $5.25. The company’s board hasn’t announced whether it intends to accept or reject the offer. Unlike takeover offers seen in the resources industry, it can’t be said that this is an opportunistic move.
Prior to the takeover bid the company’s shares were trading at $4.28 per share, that’s only marginally below the highs reached in 2012, and significantly higher than the low of $3.30 last year.
In an unusual twist, the company’s board fired chief executive officer Stephen Porges. The company reported that Porges was fired due to ‘fundamental differences of opinion’ between him and the board. At the close the shares were trading below the takeover level, which could suggest there is some doubt about whether the board will accept the bid.
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Cheers,
Kris+
