Sumitomo Corp Makes $580 Million Bid for Australian Vehicle Leasing Firm, Joining Four-Way Contest

Reuters··AUJPCA·Read original
3▲1 ▼1Impact / 5
Summary · why it matters

A consortium led by Sumitomo Corporation has made a takeover proposal of A$813.1 million (US$582.26 million) for Australian vehicle leasing company Fleet Partners Group, escalating the bidding war to a four-way contest. Other contenders include ORIX, SG Fleet under Australian private equity giant Pacific Equity Partners, and Canada's Element Fleet. The consortium, comprising Sumitomo Corporation and Sumitomo Mitsui Auto Service, has offered A$3.85 per share in cash, a 34% premium over the July 31 closing price before the bidding war began. This offer exceeds the A$3.80 from ORIX and Element Fleet but falls short of SG Fleet's A$4.00. Fleet Partners' shares have surged nearly 50% since the initial proposal, pushing its market capitalization to A$904.4 million.

Impact on assets 2

Energy Transition & Power Demand± Mixed
Sumitomo Corporation
8053
▲ PositiveCapitalrelevance

Sumitomo leads a consortium making a A$813.1 million takeover bid for Fleet Partners, a strategic acquisition.

ORIX Corporation
8591
▼ NegativeCompetitionrelevance

ORIX's bid of A$3.80 is lower than Sumitomo's A$3.85 and SG Fleet's A$4.00, reducing its chances in the bidding war.

Off-coverage companies 5

FleetPartners Group Limitedi
Private▲ PositiveCapitalrelevance

Fleet Partners is the target of a bidding war with offers up to A$4.00 per share, a 34% premium, boosting its valuation.

SG Fleet Groupi
Private▲ PositiveCompetitionrelevance

SG Fleet's A$4.00 bid is the highest, positioning it favorably in the contest.

Sumitomo Mitsui Auto Servicei
Private▲ PositiveCapitalrelevance

Sumitomo Mitsui Auto Service is part of the consortium making the acquisition bid, expanding its business.

Element Fleet Management Corp. (formerly Element Financial Corp.)i
Private± Mixedrelevance

Pacific Equity Partnersi
Private± Mixedrelevance