Source: Pendal Group
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  • Pendal Group (PDL) shares soar on the market today, after receiving a $2.4 billion takeover offer from Perpetual (PPT)
  • The company has received a conditional, non-binding indicative proposal from Perpetual through an all share deal
  • The proposal is one Perpetual share for every 7.5 Pendal shares, with an extra $1.67 for every Pendal shares owned prior to the takeover
  • However, the deal is subjected to a number of conditions including negotiation and executive of transaction documentation and receipt of all approvals
  • PDL shares are up 21.2 per cent, trading at $5.43, PPT shares dropped 6.56 per cent, trading at $31.99

Pendal Group (PDL) shares have soared on the market today, after receiving a $2.4 billion takeover offer from Perpetual (PPT).

The company has received a conditional, non-binding indicative proposal from Perpetual through an all share deal.

The proposal is one Perpetual share for every 7.5 Pendal shares, with an extra $1.67 for every Pendal shares owned prior to the takeover.

However, the deal is subjected to a number of conditions including negotiation and executive of transaction documentation and receipt of all approvals.

This represents an indicative value of $6.23 per share, a premium of 39.2 per cent to Pendal’s last closing share price on April 1.

If the deal is successful, Pendal shareholders would own around 48 per cent of the merged entity.

Pendal has confirmed that the board has commenced an assessment of the indicative proposal, considering the value of Pendal on a strategic and control basis and is “carefully assessing” the outlook for Perpetual.

The board has assured that it will consider all the factors in the proposal to ensure that it acts in the best interests of shareholders as it assesses the indicative proposal as well as assessing alternative opportunities for Pendal.

Macquarie Capital has been appointed as Pendal’s financial advisor and King & Wood Mallesons as the company’s legal adviser in relation to the indicative proposal.

The Pendal Board acknowledges that the indicative proposal has come 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 company notes that these factors 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.

PDL shares were up 21.2 per cent, trading at $5.43, PPT shares, however, were down 6.56 per cent, trading at $31.99 as of 1:00 pm AEST.

PDL by the numbers
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