Australia's Pepper Money drops after Challenger trims takeover bid

Challenger

17/03/2026 01:02

Updates

** Shares of Australia's Pepper Money PPM.AX fall as much as 11.4% to A$1.870, their biggest intraday drop since late-August 2023

** The non-banking lender said Challenger CGF.AX submitted a reduced takeover offer to acquire PPM, valuing it at A$1.01 billion ($713.57 million) from earlier valuation of A$1.16 billion

** "Reduction reads more like Challenger managing its own shareholder optics than a genuine revaluation of Pepper Money's assets," says Mark Gardner, founder and CEO of MPC markets

** The revised offer of A$2.25 per PPM share represents a 6.6% premium to last close

** Challenger's revised proposal for Pepper Money is its best and final offer - Co

** Around 818,000 PPM shares change hands, nearly 1.2x 30-day average

** CGF shares rise as much as 4.7% to A$8.040, set for their best day since February 18, if gains hold

** YTD, PPM stock down 11.6% and CGF down 16.3%

($1 = 1.4154 Australian dollars)

 (Reporting by Keshav Singh Chundawat in Bengaluru)

 ((Keshav.singhchundawat@thomsonreuters.com))