AUB Group Limited has disclosed a conditional, non-binding proposal from an EQT affiliate to acquire the company at $45 per share, following unusual trading activity and media reports.
- Conditional, non-binding $45 per share acquisition proposal from Arbutus Pte. Limited
- Previous unsolicited offer at $43 per share received in September 2025
- Disclosure followed ASX price query and media article triggering trading halt
- AUB confirms compliance with ASX continuous disclosure rules
- Proposal remains indicative with no binding agreement yet
Background to the Trading Activity
In late October 2025, AUB Group Limited experienced a notable rise in its share price, climbing from a low of $32.24 to a high near $36. This unusual trading pattern prompted the Australian Securities Exchange (ASX) to issue a formal price query to AUB, seeking clarity on whether any undisclosed information could explain the market movement.
Disclosure of Acquisition Proposal
Initially, AUB did not disclose the proposal, citing Listing Rule 3.1A, which allows companies to withhold incomplete or confidential negotiations from the market. However, after a media article titled "Underperforming AUB Group in crosshairs of private equity suitor" appeared in the Australian Financial Review on 27 October, the information was no longer confidential. Consequently, AUB requested a trading halt and promptly announced the proposal publicly on 28 October.
Regulatory Compliance and Market Implications
AUB confirmed full compliance with ASX Listing Rules, particularly continuous disclosure obligations under Rule 3.1. The company’s Disclosure Committee authorized the responses to ASX’s queries, ensuring transparency and regulatory adherence. The announcement clarifies the reasons behind the recent share price volatility and provides the market with material information about potential corporate control changes.
While the proposal is non-binding and indicative, the premium offered over recent trading prices has attracted investor attention. Market participants will be watching closely for any developments, including whether a binding agreement is reached or if competing bids emerge.
Looking Ahead
The coming weeks will be critical for AUB shareholders and analysts as the company navigates this potential acquisition. The outcome could reshape AUB’s strategic direction and valuation, with private equity interest signaling confidence in the company’s underlying value despite recent underperformance.
Bottom Line?
AUB’s disclosure lifts the veil on a significant acquisition proposal, setting the stage for a pivotal chapter in its corporate story.
Questions in the middle?
- Will AUB receive competing acquisition proposals or improved offers?
- How will AUB’s board and shareholders respond to the $45 per share proposal?
- What are the strategic plans of Arbutus Pte. Limited and EQT if the acquisition proceeds?