Company Interview / Nic's M&A radar is lighting up

Key points:

Sproats sees Perpetual (ASX:PPT) as a key M&A focus with private equity due diligence underwayPacific Equity Partners targets mid-cap names such as FleetPartners Group (ASX:FPR) via SG Fleet (ASX:SGF)Non-binding $17 bid for Energy One (ASX:EOL) underscores continued offshore interest in Australian techSproats highlights Takeovers Panel action in Estrella–Zenith and potential future moves in Helloworld Travel (ASX:HLO)

Nic Sproats from Harvest Lane Asset Management outlines a busy period for Australian M&A, highlighting renewed activity in several mid-cap names. Sproats points to Perpetual (ASX:PPT), where a new private equity consortium is granted due diligence. In Sproats’ view, this is a positive shift for a “beleaguered” company with a history of rejecting bids, as it allows a serious buyer to properly assess the business and potentially reprice its approach rather than engage in incremental bid increases.

Sproats also focuses on Pacific Equity Partners’ backing of SG Fleet (ASX:SGF) in a move on FleetPartners Group (ASX:FPR). He describes PEP as a strong closer, sector agnostic, and particularly active outside the ASX 100, where it sees fertile ground for value creation over five-year horizons. Recent deals, including large premiums such as the 100% uplift for AVJennings (ASX:AVJ), are cited as examples of the opportunities in public-to-private transactions.

Elsewhere, Sproats highlights Energy One (ASX:EOL), now subject to a non-binding, indicative bid at around $17 from a Norwegian trade buyer, and ongoing complexity around the takeover of Viridis Mining and Minerals (ASX:VMM) target Estrella Resources (ASX:ESR) and Zenith Minerals (ASX:ZNC), currently before the Takeovers Panel. He also notes shareholder frustration and a depressed share price at Helloworld Travel (ASX:HLO), suggesting further corporate activity is likely.