Perpetual launches buyout offer of Pendal

In an ASX listing on Monday, Pendal revealed it has received a conditional, non-binding indicative proposal from Perpetual to acquire 100 per cent of the shares in Pendal by way of a scheme of arrangement.

The offer is 1 Perpetual share for every 7.5 Pendal shares plus $1.67 cash, representing an indicative value of $6.23 per Pendal share.

While the value of the indicative proposal will fluctuate daily in line with the Perpetual share price, based on the proposed component of scrip consideration Pendal shareholders would own approximately 48 per cent of the merged entity.

Pendal’s board has begun assessing the proposal, alongside the outlook for Perpetual and the proposed combined group.

“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 company said in the ASX listing.

“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,” it continued.

The indicative proposal is subject to a number of conditions, including but not limited to due diligence; negotiation and execution of transaction documentation; receipt of all applicable regulatory and other approvals; and no material adverse change to Pendal.

Pendal confirmed it has appointed Macquarie Capital as its financial adviser and King & Wood Mallesons as its legal adviser.