Perpetual bids for Pendal
Perpetual Limited has made a conditional, non-binding indicative proposal to acquire Pendal Group Limited by way of a scheme of arrangement for $6.23 a share.
In an announcement to the Australian Securities Exchange (ASX) Pendal outlined Perpetual’s proposal of one Perpetual share for every 7.5 Pendal shares plus $1.67 cash for each Pendal share, representing an indicative value of $6.23 a share.
The investment management service said the value of the indicative proposal would fluctuate daily in line with the Perpetual share price and that Pendal shareholders would own approximately 48% of the merged entity based on the proposed component of scrip consideration.
Pendal’s board said it had commenced an assessment of the indicative proposal, considering the value of Pendal on a strategic and controlled basis. Pendal also said it was carefully assessing its outlook and that of the merged entity, given the proposal’s significant scrip component.
“The Pendal board notes that the indicative proposal has been put forward at a time when significant geopolitical instability, the economic impacts of the ongoing COVID-19 pandemic and broader market volatility has disrupted the global markets in which Pendal operates,” the statement said.
“This has materially impacted the trading values of global asset managers which may not currently reflect their long-term potential to deliver attractive returns to investors.”
The board of Pendal had appointed Macquarie Capital as its financial adviser and King & Wood Mallesons as its legal adviser.
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