Investment giant Challenger (ASX:CGF) confirmed it is in advanced discussions to acquire Pepper Money (ASX:PPM).
The proposed deal is structured as a joint venture with Pepper Group ANZ, aiming to acquire 100% of Pepper Money’s shares via a scheme of arrangement.
Under the indicative non-binding proposal, Pepper Money shareholders—excluding Pepper group—are offered a cash consideration of $2.60 per share, though this figure will be adjusted downward for any final 2025 dividends or special payouts.
For Challenger, the acquisition is a strategic play to gain "long-term rights to access fixed income assets," which are critical for driving growth and managing its investment returns.
The company emphasised its role as a disciplined capital allocator, noting that it has no plans to raise common equity to fund the deal.