Two of Australia’s oldest and most respected active asset management businesses have combined to create a multi-boutique firm with assets worth around $200B, as Perpetual Limited announces the acquisition of Pendal Group.
Pendal shareholders will receive $1.65 cash per share, less the Permitted Dividend Amount of 3.5 cents per share, and one Perpetual share of every seven Pendal shares. The cash component of the offer - $619M - will be funded by a new debt facility.
The businesses say they’re stronger together and are better positioned to drive future growth through the expansion of investment capabilities, and that the merger was 98% approved by Pendal’s clients.
Perpetual says integration work begins today with a new executive leadership team, including realising $60M in expected run-rate pre-tax expense synergies.