Australia’s Perpetual rejects takeover bid from Regal and BPEA

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Sydney-based fund manager Perpetual on Thursday rejected an unsolicited, non-binding proposal by Regal Partners and BPEA Private Equity Fund VIII to acquire 100% of Perpetual shares.

Regal Partners, a Sydney-based alternatives boutique with A$5.4 billion ($3.5 billion) in assets under management, and BPEA Private Equity Fund VIII, which closed in September with commitments of 11 .2 billion, offered to acquire 100% of the shares of Perpetual for A$30.00. in cash per share, or 1.75 billion Australian dollars.

Baring Private Equity Asia, which manages the BPEA fund, was acquired by EQT last month.

The proposal, which would see Regal acquire Perpetual’s asset management business and BPEA acquire Perpetual Corporate Trust and private client businesses, was conditional on Perpetual “not proceeding with its plan to acquire Pendal” Group, a Sydney-based fund manager.

“We believe the proposal we have submitted is compelling to Perpetual shareholders and, importantly, is more attractive than maintaining the status quo and proceeding with the proposed acquisition of Pendal,” according to a press release from Regal Partners. .

Perpetual, in an announcement on the Australian Stock Exchange, said the proposal “significantly undervalues ​​Perpetual” and that it was “not in the best interest of its shareholders to participate in this offer”.

“Perpetual is committed to pursuing its acquisition of Pendal Group, which was announced on August 25, the statement said.

In Thursday’s trading, shares of Regal soared 4.5%, shares of Perpetual jumped 7.3% and shares of Pendal plunged 10.7%.

Perpetual reported A$90.4 billion in assets under management as of June 30, while Pendal had A$111 billion.

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