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Source: Smartgroup Corporation
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  • An offer to buy out all of the shares in Smartgroup Corporation (SIQ) and take over the employee management services business has been abandoned
  • TPG Global and Potentia Capital had offered $10.35 per share under the original offer, before discussions ceased and the proposal was terminated
  • The consortium is now offering $9.25 per SIQ share, but Smartgroup advises its board has decided against exploring the new, lower offer
  • SIQ shares jumped in value after the initial buyout proposal in late-September, with shares now dropping 13.5 per cent to $8.08 each following today’s news

An offer to buy out all of the shares in Smartgroup Corporation (SIQ) and take over the employee management services business has been abandoned.

Smartgroup announced the news on Monday, with its share price dropping 15 per cent and shedding over $1.40 from its price in response.

Under the original offer, a consortium consisting of TPG Global and Potentia Capital had offered $10.35 per share to buy out 100 per cent of Smartgroup’s securities on offer.

But, discussions among the parties have now ceased after the consortium decided to terminate its proposal.

TPG and Potentia have extended a second initial offer of $9.25 per SIQ share, but Smartgroup advises its board has decided against exploring the new, lower offer.

In a statement on Monday, the company explained the board had “unanimously concluded not to proceed with discussions.”

Instead, Smartgroup said it’ll focus on delivering sustained earnings and dividend growth for its shareholders.

The business noted it was on track to deliver a CY21 financial performance in line with expectations.

SIQ shares initially jumped in value after the consortium buyout proposal was announced in late September.

Following the withdrawal of the proposal, Smartgroup Corporation shares were trading down 13.5 per cent at $8.08 each during midday trade.

SIQ by the numbers
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