Pendal (ASX:PDL) shares zoom 23% on Perpetual (ASX:PPT) takeover offer

April 04, 2022 11:30 AM AEST | By Bhawna Gupta

Pendal (ASX:PDL) shares zoom 23% on Perpetual (ASX:PPT) takeover offer — Image source: © Pichetw | Megapixl.com

Value of the deal

The Indicative Proposal is for 1 Perpetual share for every 7.5 Pendal shares, plus AU$1.67 in cash for each Pendal share. Based on the closing price of Perpetual shares on the ASX on 1 April 2022, this represents an indicative value of AU$6.23 per Pendal share.

The deal values Pendal at around AU$2.4 billion (US$1.8 billion).

The Indicative Proposal's value will change daily following the Perpetual share price. Pendal stockholders would own about 48% of the combined firm based on the proposed component of scrip consideration.

The board of directors of Pendal stated it is reviewing the offer and that shareholders do not need to take any action.

Global asset managers' trading values have been damaged by geopolitical uncertainty, the economic repercussions of the Covid-19 pandemic, and broader market volatility, according to Pendal, and present valuations may not reflect their long-term potential.

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