After almost a year of takeover attempts, Pendal announced to the market today that the fund manager revealed that Perpetual offered another (higher) offer for Pendal shares.
The conditions of the deal is priced in scrip and cash at one Perpetual share for every 7.5 Pendal shares, plus $1.976 cash for each Pendal share. The offer will be reduced by the amount of any final dividend paid to Pendal shareholders for the six months all the way up to 30 September 2022.
The offer has an implied value of $6.54 per Pendal share based on Perpetual’s closing share price on 1 April 2022. That value of $6.54 represented a 46% premium to the Pendal closing price on 1 April 2022. Based on Perpetual’s closing price on 24 August 2022, the offer has an implied value of $6.016 per Pendal share. This represents a 23.3% premium to Pendal’s closing share price.
Pendal shareholders will own approximately 47% of the combined group. Up to three Pendal directors will join the Perpetual board after the implementation of the deal.
The Pendal board unanimously support the offer. It also has the “strong support” of the investment teams. There has been a commitment from Perpetual to preserve the “culture of investment independence”.
Pendal chair Deborah Page stated:
”If the scheme is approved by you, our shareholders, the proposed transaction will see two iconic financial services firms brought together to create Australia’s pre-eminent global asset manager, with combined funds under management of $201 billion.
We believe this is a compelling opportunity for shareholders and the business alike. The combination will deliver a significant increase in scale, boost our position in an increasingly competitive global market and bring strategic benefits in the dynamic sectors in which we operate, both domestically and internationally.”