Information and standards company SAI Global has sacked its chief executive and revealed it is the subject of a $1.1 billion private equity takeover bid.
Pacific Equity Partners has launched an indicative bid for the Sydney-based information services group, best known for its subsidiary Standards Australia.
News of the offer came as SAI revealed it had axed chief executive Stephen Porges, just four months after he took the helm.
SAI also flagged job cuts, the closing of offices and other restructuring which would mean a $7 million hit to this year's financial result.
SAI shares soared 73 cents, or 17 per cent, to $5.01 - not far off its all-time high of $5.25 in April 2012.
Pacific Equity is offering between $5.10 and $5.25 a share.
That is a 19-23 per cent premium to last Friday's closing price of $4.28.
The offer was made on May 15, before action was taken against Mr Porges.
SAI said it had not formed a view as to the merits of proposal.
However the board was open to holding talks with Pacific to explore whether a binding proposal could be put to shareholders.
Invast chief market analyst Peter Esho noted growing interest in Australia's industrials space in a sign that rival bids could emerge.
"I think we'll see more of this in what I call the lazy industrials - stocks that are good businesses but don't really have market trust in terms of what they can deliver in the immediate term," he told AAP.
As SAI's board considers Pacific's offer, it has launched a search for a new chief executive after discovering "fundamental differences of opinion" with Mr Porges.
"Last week, it became clear to the board that we were unlikely to resolve the differences between the non-executive directors and the CEO regarding the changes required and the pace of those changes to deliver the business improvements that we are seeking over the short to medium term," SAI said.
Mr Porges' predecessor Tony Scotton and former chairman Robert Wright quit last October in the wake of an earnings downgrade and statutory loss of $43 million in 2012-13.
Current chairman Andrew Dutton has now taken an executive role until a replacement is found.
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