Confirms non-binding indicative offer to acquire Perpetual
03 Nov 2022
Regal Partners, in a strategic consortium with BPEA Private Equity Fund VIII's indirect wholly-owned subsidiary Morello Pte. Limited, has proposed a transformational acquisition of Perpetual Limited, whereby Regal will seek to acquire 100% of Perpetual’s asset management businesses, significantly accelerating the growth and scale of its current investment and distribution platform.
HIGHLIGHTS
- Regal and the BPEA EQT Fund, have made a non-binding indicative all-cash proposal to Perpetual for the acquisition of 100% of the ordinary fully paid shares in Perpetual by way of a scheme of arrangement for a price of A$30.00 per share.
- The consortium believes that the proposal provides Perpetual and its shareholders with an outcome that is superior to the acquisition of Pendal Group Limited, and has requested that Perpetual engage with the consortium in order to progress the Proposal.
- Regal and the BPEA EQT Fund have agreed that Regal will seek to acquire the asset management businesses of Perpetual and, simultaneously, the BPEA EQT Fund will seek to acquire the Perpetual Corporate Trust and Private Clients businesses.
- An acquisition of Perpetual’s asset management businesses provides a compelling opportunity for Regal to accelerate the growth and scaling of its investment and distribution platform globally and to further diversify its existing product, revenue and client base.
- The combination of Regal’s and Perpetual’s asset management businesses would create a leading provider of active investment strategies globally, with over A$90 billion in AUM across traditional and alternative asset classes, servicing a deep pool of client relationships across institutional, HNW and retail channels.
- The proposal is consistent with Regal’s growth ambitions, including the pursuit of inorganic growth where it makes sense.
- At this stage, the consortium has sought engagement and due diligence in order to assess whether a binding proposal can be put to the Board of Perpetual.
- Following completion of the merger between Regal and ASX-listed VGI Partners and the subsequent successful capital raising, Regal’s balance sheet is strong. As a result, we expect multiple funding sources and funding markets to be available to Regal should the proposal progress further.