Eclipx rejects $806m offer

FLEET manager Eclipx Group has rejected an $806.6 million cash-and-stock takeover offer from peer SG Fleet Group, describing the offer as “inadequate”.

The offer of $2.00 cash and 0.15 SG Fleet shares per Eclipx share, translates to $2.5235 per Eclipx share and represents a 17.9 per cent premium to Eclipx’s closing price on Friday.

Eclipx was tipped last week to be a takeover target by SG Fleet after a profit downgrade sent its shares sharply lower.

Eclipx chairman Kerry Roxburgh said SG Fleet’s offer did not “reflect the long-term prospects and value inherent in Eclipx Group”.

SG Fleet, in a separate statement, said it was disappointed by Eclipx’s decision to not engage in talks about the offer and believed the proposed deal would add value to all shareholders.

“SG Fleet believes industry consolidation is in the best interest of all shareholders and SG Fleet will continue to consider its options in that regard.”

Eclipx has already started a strategic review to evaluate the merits of “alternative customer orientated initiatives” and corporate actions available, the firm said in a statement.