Perpetual (ASX:PPT) rejects takeover bid from Regal Partners & Private Equity

November 02, 2022 06:24 PM PDT | By Khushboo Joshi

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Perpetual (ASX:PPT) rejects takeover bid from Regal Partners & Private Equity — Image source: © Rugbyho | Megapixl.com

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Highlights

Fundie Perpetual Limited has rejected a takeover offer from a consortium comprising Regal Partners and BPEA Private Equity Fund VIII.

As per Perpetual, the offer of AU$30 per share proposed by the consortium, was undervaluing the company.

The company is now focusing on accelerating the acquisition of rival Pendal Group, announced on 25 August 2022.

Australian funds manager Perpetual Limited (ASX:PPT), on 3 November 2022, announced that it has rejected the buyout proposal made by a consortium to acquire 100% of PPT for AU$30 apiece. The consortium comprised of BPEA Private Equity Fund VIII and Regal Partners Limited (ASX:RPL)

The shares of the company, that closed at AU$26.90 per share on Wednesday (2 November 2022), jumped nearly 9% during the opening hours of trading on the ASX. At 10:51 AM AEDT, the stock was trading at AU$28.495 per share, up 6%, with a market capitalisation of AU$1.54 billion.

Key details from the Consortium’s proposal

The indicative proposal of AU$30.00 cash per share, according to Perpetual, was undervaluing the company.
The AU$1.749 billion takeover offer was a premium of 16% to the Perpetual shares on 2 November 2022 of AU$25.68 per share.
Perpetual stated that now it is focusing towards accelerating its acquisition of Pendal Group (ASX:PDL). This acquisition was announced on 25 August 2022.
Meanwhile, Regal Funds Management had recently acquired VGI Partners Ltd in June.

Perpetual Limited declared a scrip and cash deal in August 2022. The companies arrived at this stage months after the board of Pendal had rejected Perpetual’s offer of AU$2.4 billion as too low and undervaluing.

Regal Partners said in a statement:

Meanwhile, the shares of the company (Regal Partners) were spotted trading 1.8% strong at AU$2.730 apiece at 11:22 AM AEDT on the ASX today.

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