GQG's counter bid for Australia's Pacific Current may be "defensive" - Morningstar

Pacific Current

27/07/2023 21:53

** Analysts at Morningstar say GQG Partners'  GQG.AX 
underlying objective behind plans to make a takeover bid for
Pacific Current Group  PAC.AX  may be defensive
    ** Earlier this week, PAC received a non-binding buyout
proposal from Regal Partners  RPL.AX , valuing the asset manager
at A$573.5 mln ($384.59 mln) 
    ** Morningstar says GQG might be seeking to ward off Regal
and preserve its commercial relationship with PAC, which
distributes GQG's products in North America & Australia 
    ** Says at first glance, GQG's counter-bid to Regal appears
contrary with its strategy of organic growth
    ** Brokerage says GQG may need to offer a higher premium and
potentially overpay for PAC to fend off Regal
    ** A bid price range of between A$12-A$14 is possible under
present market conditions - Morningstar
    ** As of last close, GQG and PAC up 18.3% and 40.9% YTD,
respectively


($1 = 1.4912 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))