Canadian company Element Fleet Management (TSE: EFN) has pulled out of an auction for car lease management company FleetPartners (ASX: FPR).
Three other bidders, including Australia’s largest private equity firm, Pacific Equity Partners (PEP), have submitted revised indicative offers, FleetPartners reported on 14 September.
PEP put Fleet Partners into play in late July, backing a $3.60-a-share offer from its investee car lease management company SG Fleet. Fleet Partners and SG Fleet are both leading providers of novated lease packages, under which individuals can reduce income tax by paying car lease payments from their salaries, pre-tax.
Days after SG Fleet had made its indicative bid, Element lodged a $3.80-a-share offer which it committed to increase to $4-a-share if the board of FleetPartners granted it exclusive due diligence by August 11. SG Fleet nullified that strategy by quickly lifting its indicative offer to $4-a-share, without requiring exclusive due diligence.
Indicative offers were also made by ORIX Corporation of Japan and a consortium of Japanese trading company Sumitomo and Sumitomo Mitsui Auto Service Company.
FleetPartners announced on 14 September that it had received three revised non-binding offers: from SG Fleet at $4.55 a share, ORIX, $4.65, and the Sumitomo consortium, $4.65. The offers were, however, subject to varying terms and conditions.
FleetPartners has decided to grant each of the three remaining bidders access to further due diligence.
Announcement of the revised bids lifted FleetPartners share price from $4.12 to close at $4.63.
Image: FleetPartners is a leader in providing novated lease packages.