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SAI Global terminates CEO, receives takeover offer

27 May 2014 3:44PM
SAI Global has announced the sacking of its chief executive and the receipt of a takeover offer - all in one day. The company, whose businesses include mortgage processing services and a property information brokerage, said in a statement to the Australian Securities Exchange that it was terminating the contract of CEO Stephen Porges, who has only been in the job since January.Porges was previously the CEO of Aussie Home Loans and also CEO of Newcastle Permanent Building Society.The company said the board reached its decision after it became clear that there were "fundamental differences of opinion" between Porges and the board about the detail and pace of implementation of the company's strategic business improvement program.SAI's Global's non-executive chairman, Andrew Dutton, has been appointed executive chairman. He will serve in that role until a new CEO has been appointed.Meanwhile, private equity group Pacific Equity Partners announced that it had submitted a non-binding indicative proposal to acquire 100 per cent of the issued share capital of SAI Global.PEP is offering between A$5.10 and $5.25 a share, which represents a premium of 23 per cent to 27 per cent over SAI's 90-day average share price as at May 23.PEP said that the SAI Global board had agreed "to engage with it" on the proposal.SAI Global has been through a difficult transformation over the past couple of years. It made a loss of $43.1 million in 2012/13 after taking an $86 million impairment charge related to the assets in its compliance division.Its results for the December half included an increase in revenue but a reduction in profit, compared with the previous corresponding period, after it took a higher charge for depreciation.The company conceded in a recent investor briefing that its EBITDA had "flat-lined" over the past four years and that its margins were falling.

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