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Highlights
- Deal Terminated: Perpetual ends talks with KKR for the sale of wealth management and corporate trust units.
- Shareholder Interests: An independent review found the revised deal terms were not beneficial to shareholders.
- Sale Still on the Table: Perpetual will pursue a separate sale of its wealth management business.
Perpetual Ltd (ASX:PPT) has called off negotiations with global investment giant KKR, ending months of talks over a $2.2 billion deal to sell its wealth management and corporate trust units.
The fund manager announced on Monday that the revised deal terms and conditions were “not in the best interests of shareholders”, following an independent expert's assessment.
“The board has determined that the value and terms of those revised proposals... were not in the best interests of shareholders, and discussions have now ended,” Perpetual said in a statement.
Why the Deal Fell Apart
The initial sale to KKR, announced in May 2023, hit a snag when Perpetual was slapped with a higher-than-expected tax bill — complicating the deal’s economics.
Despite efforts to renegotiate, the board ultimately decided the latest offers didn’t deliver enough value, prompting them to walk away from the talks.
What’s Next for Perpetual?
While the KKR deal is dead, Perpetual remains committed to offloading its wealth management division through a separate sale.
The company did not specify potential buyers or a timeline, but the move signals a strategic shift as Perpetual looks to streamline operations and refocus on core business areas.
KKR has not yet commented on the development.
