Takeover target Perpetual has confirmed it has received a revised offer from private equity giant Kohlberg Kravis Roberts & Co (KKR) for its wealth management and corporate trust businesses.
The Australian Financial Review reported KKR had returned to the table with an offer of A$8 cash per share which valued the two business at $916 million and which, when franking credits were included, would be worth $11 per share ($1.3 billion).
Perpetual said the revised proposal and its quantum were not accurately described in the media and the outstanding commercial terms that would need to be agreed and the net proceeds that shareholders would receive were “uncertain at this stage”.
“The Perpetual Board is assessing the Revised Proposal and associated terms and will update shareholders on its engagement with KKR as soon as possible,” the company said in an announcement to the Australian Securities Exchange.
Perpetual announced in May 2024 that KKR would buy the two businesses via a scheme of arrangement for $2.175 billion in cash but an adverse tax ruling reduced the value of the offer to between $5.74 and A$6.42 per share from between $8.38 and A$9.82.
Perpetual, a 139-year-old company, was put into play in December 2023 when Washington H. Soul Pattinson launched a $27 per share offer worth $3 billion with plans to split its asset management business from its wealth management and corporate trust businesses.
Although this offer was rejected, it sparked rival bids in January 2024 from TA Associates for Perpetual’s wealth business and from EQT Partners for its corporate trust business, before KKR made its first offer.
Perpetual was once lauded for its active stock picking but the share price has halved in the last five years as funds under management declined due to the popularity and higher returns of index funds and acquisitions made under a previous management team failed to deliver on expectations.
By 11:40 am AEDT (12:40 am GMT) Perpetual (ASX: PPT) shares had risen 37 cents (1.59%) to A$23.69, valuing the company at $2.71 billion.
