The All Ordinaries Index (ASX: XAO) is up 0.6% on Monday morning with plenty of help from this rocketing ASX All Ords stock.

Shares in the fleet management and vehicle leasing company closed on Friday, trading for $2.67. At the time of writing, shares are swapping hands for $3.29 apiece, up 23.2%.

This comes on the heels of a potential $1.2 billion takeover offer announcement released before market open today.

Any guesses which rocketing share we're talking about?

If you said SG Fleet Group Ltd (ASX: SGF), go to the head of the virtual class.

Here's what's happening.

ASX All Ords stock in takeover discussions

Investors are sending the ASX All Ords stock soaring today after the company confirmed that it is in discussions with Pacific Equity Partners and some of its affiliates (PEP) relating to PEP's non-binding and indicative proposal to acquire all of SG Fleet's shares.

According to the release, PEP is offering $3.50 a share in the takeover deal. That's 31% above Friday's closing price and still 7% above the current share price.

The ASX All Ords stock has 341.98 million shares outstanding, which means the PEP's offer values the company at $1.197 billion.

The board noted that, along with its advisers and largest shareholder, it believes it's in the interests of all SG Fleet Shareholders to engage with PEP on the indicative proposal.

The board said it has granted PEP "a period of exclusivity to facilitate due diligence and enable it to put forward a binding offer and for the parties to concurrently negotiate a scheme implementation deed".

This period expires on Friday, 29 November 2024.

Management stressed that:

There is no certainty that the indicative proposal will result in a transaction. Any agreed transaction would require board approvals and negotiation of transaction documents. The implementation of any transaction would also be subject to various conditions including shareholder and regulatory approvals.

The ASX All Ords stock said it has engaged BofA Securities as its financial adviser and Gilbert + Tobin as its legal adviser for the takeover discussions.

What's been happening with SG Fleet shares?

With today's big intraday boost factored in, the SG Fleet share price is now up 40.1% over the past full year.

Atop those share price gains, the ASX All Ords stock trades on a juicy, fully franked 10.3% trailing dividend yield.

SG Fleet shareholders were told they'd be kept updated on the takeover negotiations with PEP, and they do not need to take any action today.