Key facts
- FleetPartners received an A$813.1 million ($582.3 million) offer from a Sumitomo-led consortium.
- This is the fourth bid for FleetPartners in under a month.
- The Sumitomo offer is A$3.85 per share, a 34% premium to the stock's close on July 31.
- SG Fleet's A$4.00 per share proposal remains the highest bid.
- FleetPartners' novated leasing business is a key attraction for bidders.
FleetPartners, an Australian vehicle leasing provider, has received a fourth bid for its business, this time from a consortium led by Japan's Sumitomo Corp. The offer values the company at A$813.1 million ($582.3 million) and includes A$3.85 per share, representing a 34% premium to the stock's closing price on July 31, before the bidding war commenced. This latest offer joins those from Japan's ORIX, Pacific Equity Partners-backed SG Fleet, and Canada's Element Fleet. The Sumitomo consortium's bid trails SG Fleet's proposal of A$4.00 per share, which was raised after an initial approach was rejected. The appeal of FleetPartners' rapidly growing novated leasing business, which benefits from tax incentives for electric vehicles, is seen as a key driver for the multiple international bidders. Novated leasing allows employees to finance vehicles through their employers, potentially reducing their income tax burden. Analysts suggest the competitive situation could push the final sale price above A$4.00 per share due to strategic synergies. The ongoing interest from foreign investors and private equity firms in Australian companies, particularly in financial services, is also highlighted by these competing approaches. FleetPartners has granted the Sumitomo consortium limited access to commercial and financial due diligence as it continues discussions with all suitors. Despite the surge in its share price over the past three weeks, FleetPartners' stock was trading slightly lower in early trading.