Analysts doubtful over Australia's Perpetual sale of units to KKR, stock dips

Perpetual

09/05/2024 01:47

(Adds comments from Jarden, share moves)
    ** Citi trims PT on Australian fund manager manager
Perpetual Ltd  PPT.AX  to A$23.25 from A$25.95; retains
"neutral" rating on the stock
    ** Cites "uncertainty" regarding amount of proceeds that PPT
would receive after it sells its corporate and wealth units to
KKR  KKR.N  
        ** Analysts at Morningstar says lack of details on
transaction, separation, and capital gains tax make it difficult
to ascertain whether or not deal is accretive to our current
intrinsic assessment 
    ** Another brokerage, Jarden cuts PT to A$24.55 from
A$26.50; cuts EPS outlook by 0.6% and 2.8% for FY24 and FY25,
respectively
        ** Says the sale of units is premature given PPT is "yet
able to quantify net proceeds despite the Board having
sufficient conviction to recommend the deal subject to no
superior proposal"
  
        ** Shares of Perpetual are down 0.2 % at A$22.28 and has
fallen 12.40% so far this year, as of last close

 (Reporting by Poonam Behura and Roshan Thomas in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))