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Highlights
- Platinum Asset Management opens books to Regal Partners for due diligence.
- Platinum seeks potential improved terms from Regal’s proposal.
- Regal aims to expand its hedge fund empire with the potential acquisition.
Platinum Asset Management (ASX:PTM) has granted Regal Partners (ASX:RPL) access to its books for due diligence, in the hopes that this move could lead to an improved acquisition offer. This step comes after Platinum’s board rejected Regal’s initial bid, which was valued at $1.18 per share, based on Regal’s share price of $3.60 at the time.
The initial offer from Regal proposed 0.274 of its shares for each Platinum share, along with a special 20¢ dividend to be paid from Platinum’s reserves. Despite the rejection, Platinum has agreed to enter a mutual, non-exclusive due diligence period, allowing both companies to explore the potential benefits of the acquisition further. Platinum’s board stated that this process may help Regal refine its proposal and give Platinum an opportunity to evaluate the true value and potential benefits of a combination with Regal.
Platinum’s founder and major shareholder, billionaire Kerr Neilson, has yet to publicly comment on the offer. The board remains open to other offers from third parties, keeping the door open for potential interest from other buyers.
For Regal Partners, co-founded by chief investment officer Phil King, acquiring Platinum would significantly expand its assets under management, potentially creating a $29 billion hedge fund empire. Regal’s assets have already grown to $16.5 billion, following its acquisition of VGI Partners, PM Capital, and Merricks Capital. Currently, Platinum’s market value stands at $650 million.
Analysts view this development positively, with some suggesting that Regal’s decision to wait for access to due diligence before revising its offer indicates a strong focus on ensuring any deal would be financially advantageous. Regal’s ambition to expand its portfolio through strategic acquisitions has made this potential deal one to watch in the asset management space.
As the due diligence process unfolds, the market will closely monitor any revised offers or updates from both companies, with the potential acquisition likely to impact the competitive landscape of Australian asset management.
