- The share price of Perpetual Limited tumbled almost by 15% on Thursday (17 November).
- Supreme Court of New South Wales found that Perpetual could witness a hefty fine if it walked away from buying Pendal.
- Today, both companies have agreed to revised terms as per which Perpetual would acquire 100% of Pendal shares.
Diversified financial giant Perpetual Limited (ASX:PPT) on Thursday announced that both Perpetual and Pendal Group Limited (ASX:PDL) have agreed to revise the cash and scrip deal. Under this scheme of the arrangement, Perpetual would acquire 100% of shares in Pendal.
Also, the Supreme Court of New South Wales has stated that if Perpetual dumps the acquisition deal, it would be required to pay AU$23 million to Pendal and face legal action.
Post the updates, the share price of the two companies witnessed significant movements. While Pendal shares were spotted trading 10.5% up at AU$4.930 apiece, Perpetual shares were 14.407% down at AU$27.030 per share at 2:30 PM AEDT on the ASX.
On Thursday, both the companies (Perpetual Limited and Pendal Group Limited) stated that they have agreed to the revised terms that suggest the merged entity would have less debt. But Perpetual would require issuing more shares.
Key takeaways from the revised terms