Platinum Asset Management (ASX:PTM) said its board of directors has unanimously rejected a non-binding, indicative proposal from Regal Partners.
The proposal sought to acquire all of Platinum's shares via a scheme of arrangement.
Under the proposed terms, Platinum shareholders would receive 0.274 Regal shares and a fully franked special dividend of 20 cents per Platinum share.
The board determined that the Regal Proposal, valued at an implied $1.10 per Platinum share based on Regal's closing price of $3.30 on Sept. 16, undervalues the company.
After consultation with financial and legal advisers, the board concluded that the proposal was not in the best interests of Platinum shareholders.
"The current terms of the Regal Proposal do not deliver appropriate value for Platinum shareholders. We assessed a range of factors, including our current turnaround strategy and future growth initiatives," the company said in a statement.
The board also highlighted the conditional nature of the proposal, which required due diligence, board recommendation, and a mutually acceptable scheme implementation deed, among other conditions.
Platinum has reiterated its openness to considering future control proposals from Regal or other third parties, provided they deliver appropriate value for shareholders.
Shareholders are advised that no immediate action is required and will be kept informed by continuous disclosure obligations.