Verdict reached on Platinum/Regal acquisition
Platinum Asset Management and Regal Partners have reached an agreement regarding whether to proceed with an acquisition following a period of due diligence which lasted more than two months.
The firm had previously made an offer for Platinum in September, but this was rejected by the firm on 26 September. On 4 October, Platinum announced it had granted Regal an extended period of due diligence in the hope of Regal submitting a higher offer.
On 9 December, it was announced that discussions between the two firms had ceased.
“The respective parties have conducted an initial period of mutual due diligence which has now concluded. Platinum advises that discussions with Regal have ceased, removing the uncertainty that has persisted since Platinum rejected Regal’s initial proposal,” Platinum told the ASX.
“Platinum remains fully focused on executing its restructure and turnaround strategy and has so far illustrated momentum in the areas of cost control, remuneration redesign, product rationalisation and a review of the investment process, all initiatives designed to stabilise and reset the business in order to return to a growth footing.”
It is understood Platinum has also received interest from Challenger, Wilson Asset Management and Paradice Investment Management, but Regal was the only one as yet to be granted this period of due diligence.
A separate statement from Regal Partners said: “Regal has now completed its due diligence of Platinum and will not be pursuing a combination with Platinum.
“Regal’s growth-focused strategy remains unchanged. Regal will continue to assess organic and inorganic opportunities prudently as and when they arise to further execute on its ambition to be a leading provider of alternative investment strategies in Australia and Asia.”
Separately, Platinum announced its monthly funds under management which revealed it saw $841 million in outflows in November. This was attributed to the loss of an institutional mandate of $537 million and net outflows from the Platinum Trust funds of $239 million.
The sum is double the outflows of $416 million seen in October.
This meant overall funds under management dropped from $12.1 billion to $10.9 billion.
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Laura Dew
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