Australia's Perpetual tumbles on unfavorable tax ruling over KKR deal

Perpetual

10/12/2024 01:12

** Shares of fund manager Perpetual  PPT.AX  fall as much as
9.7% to A$19.785, their biggest intraday drop since late-July
2023
    ** Stock hits its lowest since Oct 17, and is among the top
three losers in the ASX 200 benchmark index  .AXJO 
    ** Co says Australian Taxation Office's (ATO) review of its
deal to sell wealth management and corporate trust businesses to
KKR revealed higher liabilities, lower shareholder returns
    ** Co now sees taxes relating to deal between A$493
mln($317.20 mln) and A$529 mln vs initial assessment of A$106
mln-A$227 mln
    ** Adds estimated cash proceeds from deal would now reduce
to A$5.74-A$6.42 apiece vs A$8.38-A$9.82 earlier
    ** Says it is engaging with KKR to consider the potential
impact of ATO's review on the deal
    ** As of last close, stock down 14% YTD

    

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