Challenger (ASX:CGF) has lowered its takeover offer for Pepper Money (ASX:PPM), submitting a revised non-binding proposal of $2.25 per share.
This marks a reduction from the initial $2.60 offer disclosed in early February.
Challenger, which is pursuing the acquisition alongside Pepper Group ANZ HoldCo, has categorised this latest bid as its "best and final offer" in the absence of a superior proposal.
The revised price will be further reduced by Pepper Money’s final fully franked 2025 dividend of 7.8 cents per share, as well as any special dividends.
While Challenger has committed to keeping the market informed under its continuous disclosure obligations, the company cautioned that discussions remain incomplete and there is no guarantee that a transaction will eventuate.