SG Fleet Group (ASX:SGF) has received a non-binding, indicative offer from Pacific Equity Partners (PEP) to acquire all outstanding shares of the company at a price of $3.50 per share. Although specific numbers were not disclosed, the offer represents a potential premium for shareholders.

Following this news, SGF stock rose 23.22% to $3.29.

The SG Fleet Board of Directors, in consultation with its advisors and largest shareholder, has granted PEP an exclusivity period until November 29, 2024. This exclusivity will enable PEP to conduct due diligence and work towards presenting a binding offer. At the same time, the parties will negotiate a Scheme Implementation Deed to outline the terms of the potential transaction.

SG Fleet is a Sydney-based vehicle fleet management and leasing company that provides vehicle sourcing, financing and fleet maintenance services. We serve corporate, government and small business customers in Australia, New Zealand and the UK. The company leverages technology to streamline operations and increase efficiency in fleet management.

Pacific Equity Partners is a private equity firm with extensive experience investing in Australian and New Zealand companies across a variety of sectors. Known for their strategic expertise, PEPs typically focus on long-term growth and operational improvement.

SG Fleet retained BofA Securities as financial advisor and Gilbert & Tobin for legal advice. The company emphasized that there is no certainty that the proposal will result in a transaction, and that any agreement would require board, shareholder and regulatory approval.

Stock Watch host Chris Pedersen last looked at SG Fleet Group in July.