In response to a report in the Australian Financial Review today, SAI Global Limited (“SAI Global” ASX:SAI) confirms that it is reviewing a possible sale of its Assurance business. This process was initiated by SAI Global following approaches from, and subsequent meetings with, a number of the leading global sector participants.
A successful sale of the Assurance business will support SAI Global’s strategy to focus its globally integrated risk management solutions business towards higher margin, higher growth software and digital products and services. The market for these products shows potential for strong demand and attractive returns on investment.
While Assurance is a valuable business to SAI Global, it would require broader geographic coverage and scale in order to be even more competitive. Moreover, at present, the industry is undergoing rapid consolidation. SAI Global’s Assurance business delivers Assurance services to clients in about 120 countries and could offer significant strategic value to global competitors.
In the event of a sale, it is SAI Global’s intention that the remaining Risk Management Solutions business would continue to offer assurance products and services through a strategic alliance with the successful acquirer.
The strategic review is at a preliminary stage and there is no certainty that these discussions will result in a transaction. SAI Global will keep the market informed as required. SAI Global has appointed Greenhill and Co. as financial advisor in any process relating to the Assurance Division whilst Credit Suisse has been retained as advisors to the Board.
For more information, please contact:
Jeremy Edmonds, Investor Relations Executive
+61 2 8206 6317
+61 427 603 247
John Frey, GRACosway
+61 411 361 361
Fleur Jouault, GRACosway
+61 405 669 632