| SYDNEY, July 15
SYDNEY, July 15 U.S. buyout giant KKR & Co LP is
expected to join Australia's Pacific Equity Partners (PEP) to
lodge a $1 billion bid for Australian compliance company SAI
Global Ltd, two sources familiar with the matter told
The pairing of KKR and Australia's largest private
equity firm were expected to lodge an indicative bid by a
first-round deadline of late Tuesday, said the sources who were
close to the deal but not permitted to comment publicly because
of the sensitivity of the matter.
One of the sources said up to two other potential buyers
could lodge an indicative bid. The source did not disclose their
An SAI spokesman declined to comment and a spokeswoman for
KKR and PEP could not immediately be reached for comment.
Early-stage interest appears to justify a decision by SAI to
open up its books for potential buyers, after struggling with
two years of declining profits and recently terminating its
chief executive officer's contract after four months.
On May 26, PEP, then without KKR, revealed it had made a
A$1.1 billion ($1.03 billion) non-binding proposal to buy SAI,
the former commercial arm of Australian industry standards
aggregator Standards Australia.
SAI then said it was open to a possible sale but revealed it
had received subsequent approaches from other unnamed suitors,
leading it to make public details of its business for due
SAI and its adviser Macquarie Group Ltd will now
decide which of the indicative offers, if any, should progress
to a second round of offers.
SAI shares closed steady at A$5.05 in a flat overall market.
($1 = 1.0647 Australian Dollars)
(Editing by Stephen Coates)