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Smartgroup receives $1.3 billion bid

The billion-dollar salary packaging firm Smartgroup received a non-binding takeover bid from a consortium of private equity firms including TPG Capital and Potentia to buy all shares in the business at $10.35 each.


Smartgroup shares closed at $7.86 on Tuesday, making the offer a 31 per cent premium to the current price. The business has 133 million shares outstanding meaning the deal values all shares in the business at $1.3 billion.


Under the offer, SmartGroup investors would get $10.35 per share minus any dividend payouts.


The Smartgroup board has granted TPG due diligence and said in a statement to the ASX this morning that it intends to unanimously recommend the proposal.


The proposal also remains subject to the final approval of the board of Smartgroup and the investment review committees of each of TPG Global and Potentia Capital, and the negotiation and agreement of the terms of an implementation agreement customary for a transaction of this nature.

The consortium also advised that Aware Super as trustee will participate in the Proposal as an equity co-investor.