Pendal (ASX:PDL) shares are on investors’ radar today, here’s why

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Highlights

  • Pendal Group Ltd has announced its intention to begin an on-market share buyback of approximately AU$100 million post the declaration of its financial results for the six months to 31 March.
  • Pendal’s financial results for the six months to 31 March are expected to be released on 10 May.
  • Pendal has stated that the non-binding indicative offer received from Perpetual Limited (ASX:PPT) is not in the best interests of its shareholders. 

The shares of Pendal Group Ltd (ASX:PDL) traded in green on Tuesday (12 April 2022) after the company expressed its desire to commence an on-market share buyback of approximately AU$100 million post the declaration of its financial results for the six months to 31 March, scheduled for 10 May.

Today, Pendal shares were spotted trading 0.188% higher at AU$5.310 per share on ASX at 10:20 AM AEST. In the last one year the share price of Pendal Group has fallen by 23.60%.  

Pendal has maintained a robust cash-generating business with a strong balance sheet, which has allowed the company to pursue growth and capital management initiatives for its shareholders.  

As per today's announcement, Pendal's Board has been undertaking a capital management review since the beginning of the year, recognising that the company's shares have been under-valued.

The company has said that the buyback will be funded from its cash reserves and financial assets.   

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Image Source: © Yurolaitsalbert | Megapixl.com 

Today, Pendal shares also grabbed investors' attention as, along with the on-market share buyback announcement, the company also made two other announcements. These announcements were concerning updates on the Group's funds under management (FUM) for the March quarter and a non-binding indicative offer received from Perpetual Limited (ASX:PPT).   

Pendal has announced its funds under management (FUM) for the March quarter at AU$124.9 billion, down from AU$135.7 billion compared to the December quarter.  

Perpetual Limited’s non-binding indicative offer

While speaking on the non-binding indicative offer Pendal has received from Perpetual Limited (ASX:PPT) concerning the acquisition of its shares, the company has said that the indicative proposal undervalues the current and also the future value of Pendal and is thus not in the best interests of its shareholders.   

Noticeably, the indicative proposal represented an indicative value of AU$6.23 per Pendal share based on the closing price of Perpetual shares on 1 April 2022 and an indicative value of AU$5.97 per Pendal share based on the closing price of Perpetual shares on 11 April 2022. 

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