Regal in acquisition talks with PM Capital

PM Capital Regal Partners Limited Pacific Current Group M&A

31 October 2023
| By Jasmine Siljic |
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Regal Partners has confirmed in an ASX statement its discussion to potentially acquire PM Capital, a month after the firm pulled its bid to acquire Pacific Current Group.

On 30 October, Regal Partners confirmed recent media speculation that it is discussing a potential transaction with PM Capital.

“These discussions are significantly progressed, however they remain incomplete and no agreement has been reached as at the date and time of this announcement,” the ASX statement said. 

The firm added that there is no guarantee if a transaction will be agreed upon, following current discussions. 

The potential acquisition will not impact the provision of PM Capital’s investment management services to listed fund PM Capital Global Opportunities Fund (PGF), the firm stated. 

In January 2022, the PM Capital Asian Opportunities Trust was subject to a protracted bidding war between PM Capital and Wilson Asset Management. It had initially been set to be acquired by PGF but the offer failed to achieve the requisite shareholder approval. 

Instead it was acquired by Wilson as the only other bidder that had accrued a 36 per cent stakeholder stake. 

This week’s announcement comes a month after Regal withdrew its bid to acquire Pacific Current Group, citing consistent disappointment with the engagement by the board since its initial proposal.

It also had “little confidence” in the process being run, though it will continue to be a substantial shareholder.

Regal’s withdrawn bid opens the field for GQG Partners, which had also put in a bid in July to acquire all issued ordinary shares in Pacific Current. Pacific Current has a 4 per cent stake in GQG Partners.

“Since the submission of an initial non-binding indicative proposal (NBIO) in March 2023, Regal received limited and high-level due diligence information from Pacific Current and reaffirmed its NBIO in mid-September. Regal notes that nothing has changed in relation to its view of value of the company. Further, Regal maintains the view that an acquisition of Pacific Current could provide strategic benefits to Regal and the underlying Pacific Current affiliates,” the firm stated last month.

The specialist alternative investment manager holds approximately $5.8 billion in funds under management (FUM).

Moreover, the firm was formed following the merger of the VGI Partners and Regal Funds Management in June 2022, and covers long/short equities, private markets and real and natural assets.
 

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