Australia's Perpetual sees worst year since 2011 after Pendal deal

Great China Holdings Hong Kong

30/12/2022 02:45

** Shares of fund manager Pendal Group  PDL.AX  are on
track to lose 9.7% in 2022, while larger rival Perpetual Ltd
 PPT.AX  plunges 31%, vs a 5.3% drop on the benchmark index
 .AXJO  in 2022
    ** PPT posts worst year since 2018, while PDL logs its third
consecutive annual loss
    ** PDL surged up to 17.4% on April 4, following an A$2.4 bln
($1.62 bln) non-binding takeover offer from Sydney-based
Perpetual 
    ** Following PDL's rejection of the A$2.40 bln offer from
PPT on April 12, PDL shares fell 2.8%
    ** On Aug. 25, PDL accepted a sweetened cash-and-stock offer
from PPT that valued co at A$2.51 bln; PDL shares rose as much
as 14.8%
    ** PPT rose up to 14.8% to A$33.40 per share on Nov. 10
after it rejected an improved A$1.85 bln bid takeover offer from
a consortium of Barings Private Equity Asia and Regal Partners
 RPL.AX  
    ** On Dec. 23, PDL shareholders voted in favour of the
proposed acquisition of PDL by PPT via scheme arrangement
    ** Analysts at Morningstar say Perpetual is a sound
investment proposition at current prices
    ** While PPT's proposed acquisition of Pendal entails risks,
believe potential downside from FUM (funds under management)
losses or cost blowouts are more than priced in - Morningstar
($1 = 1.4797 Australian dollars)
 (Reporting By Udbhav Krishna P in Bengaluru)
 ((UdbhavKrishna.P@Thomsonreuters.com))