Perpetual share price leaps on boosted takeover bid

Perpetual has received an improved takeover offer…

| More on:
A graphic showing three hands holding red paddles with the word BID, indicating a bidding war for an ASX share company

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Perpetual Limited (ASX: PPT) share price is pushing higher on Thursday.

In morning trade, the fund manager's shares are up 2.5% to $29.84.

Why is the Perpetual share price rising?

Investors have been buying Perpetual shares today after the company revealed that it has received an improved takeover approach.

According to the release, Perpetual received a further unsolicited conditional, non-binding indicative proposal to acquire all its shares on issue from the consortium comprising BPEA Private Equity Fund VIII and Regal Partners.

Under the revised indicative proposal, the consortium is offering $33.00 cash per share, a 10% increase from the original indicative proposal of $30.00 cash per share.

However, Perpetual's board has considered a number of factors, including value, high conditionality, transaction and execution risks. After taking all this into account, it has determined once again that the consortium's revised indicative proposal is not in the best interests of its shareholders and has therefore rejected the offer.

In fact, it believes the offer "continues to materially undervalue the company." So, it appears that a significantly improved offer will need to be tabled to get a deal over the line.

For now, Perpetual's board advises shareholders to take no action. It will keep shareholders informed in accordance with its continuous disclosure obligations.

Pendal deal still on

In other news, Pendal Group Ltd (ASX: PDL) has responded to speculation that the above approaches could impact Perpetual's proposed takeover.

Pendal isn't planning to let that happen and is pushing ahead with a scheme meeting this week despite Perpetual requesting a delay. It commented:

Pendal wishes to update its shareholders and the market that despite requests by Perpetual for a delay, it intends to proceed to the first court hearing for the Scheme this week and to seek orders convening the scheme meeting and for despatch of the Scheme Booklet to shareholders, with a scheme meeting to occur in mid-December 2022.

Pendal notes that while the Scheme Implementation Deed permits Perpetual to engage with another proposal, it does not permit Perpetual to terminate or otherwise abandon the Scheme in order to pursue a proposal. For clarity, the Deed does not preclude Perpetual responding to a proposal, but any resulting transaction can only be implemented in circumstances where the Scheme is accommodated. Any speculation to the contrary is inaccurate and contrary to a certain and well-functioning market for corporate control.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Mergers & Acquisitions

two men shake hands on a deal.
Mergers & Acquisitions

Guess which ASX 300 stock is rocketing 23% on $1.1b takeover deal

This stock has accepted a takeover offer but it is a deep discount to its 52-week high.

Read more »

Two CEOs shaking hands on a deal.
Mergers & Acquisitions

Platinum shares drop despite L1 Capital merger agreement

These fund managers have agreed to merge their operations.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Mergers & Acquisitions

Guess which ASX 200 stock is jumping 9% on big news

Let's see why this stock is taking off this morning.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Technology Shares

Guess which ASX tech stock is racing higher on big news

This tech stock is making a key acquisition.

Read more »

Two brokers analysing stocks.
Energy Shares

Santos shares push higher on takeover update

What is the latest on this potential deal? Let's find out.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Technology Shares

Guess which ASX 300 tech stock is making a 'cutting-edge' US$28m acquisition

What is this tech stock buying? Let's find out.

Read more »

Businessman cheering at desk with arms in the air
Technology Shares

Xero share price halted amid $3.9b game-changing US acquisition

The market darling is aiming to accelerate growth in the US with this major deal.

Read more »

Man with rocket wings which have flames coming out of them.
Mergers & Acquisitions

Which ASX All Ords stock is rocketing on takeover news?

This payments company has accepted a takeover offer.

Read more »