Revised Pendal deal may not be attractive to Perpetual shareholders- Morningstar

Great China Holdings Hong Kong

21/11/2022 20:36

** Analysts at Morningstar say the revised scheme under the
takeover deal for fundmanager Pendal  PDL.AX  reflects lesser
value for shareholders under larger rival and suitor Perpetual
Ltd  PPT.AX  
    ** Says revised scheme sees PPT issuing more scrip and less
cash with 51% of ownership over the combined entity, as compared
with the previously decided 53%  urn:newsml:reuters.com:*:nL4N32D0DO
    ** Reflecting on the amended arrangements, Morningstar cuts
the fair value estimate for Perpetual to A$38.00 from A$38.80 
    ** Says over accretion to Pendal in the deal, the brokerage
moved PLD's fair value estimate to A$7.00 per share from A$6.95
per share 
    ** "We believe it's more likely than not Perpetual will
acquire Pendal, and we don't expect Perpetual to be bought by
a third party, including the Regal-BPEA consortium"- Morningstar
    ** Says Pendal's provisions to be able to force Perpetual to
complete the scheme means a prospective buyer of PPT "may be
biting off more than it can chew"
    ** Says proposed merger is defensive, believes the
acquisition of Pendal is unlikely to be value-accretive for
Perpetual over longer term  
 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))