Baring Asia Private Equity entered into an agreement with SAI Global earlier this week, after making a cash-offer of A$4.75 per share for 100% of the company, according to an announcement on the Australian Securities Exchange.
The offer price represents a 32% premium to where SAI closed the day before the announcement and will give the companyl a valuation of A$1.079 billion.
The stock instantly moved up after it starting trading on Friday, closing the week at A$4.65. That still leaves a 2.15% gross return to risk arbitrage investors, equivalent to an annualised rate of return of 9%.
The offer is “reasonable” given the...