(Adds Chairman’s quote, SG Fleet response)
Aug 20 (Reuters) - Australia’s Eclipx Group, a vehicle fleet management service provider, rejected an A$806.6 million ($590.1 million) cash and stock takeover offer from peer SG Fleet Group Ltd on Monday, describing the offer as “inadequate”.
The offer of A$2.00 cash and 0.15 SG Fleet shares per Eclipx share, translates to A$2.5235 per Eclipx share and represents a 17.9 percent premium to Eclipx’s closing price on Friday.
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.
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.
It added that it intends to retain UBS AG and Herbert Smith Freehills as advisors for this purpose.
$1 = 1.3669 Australian dollars Reporting by Aaron Saldanha in Bengaluru; Editing by Richard Pullin and Stephen Coates