Perpetual Limited has announced that it has entered into a binding Scheme Implementation Deed with Pendal Group (ASX:PDL) under which Perpetual intends to acquire 100% of shares in Pendal by way of a Scheme of Arrangement.
Perpetual said in a statement that the highly aligned businesses will create a leading global asset manager with significant scale, a broad array of high-quality investment strategies, a global leader in ESG investing, and a materially enlarged global distribution team, supported by Perpetual’s high-quality wealth management and corporate trustee businesses.
The combined group will be better positioned to accelerate future growth through the expansion of investment and distribution capabilities, while providing the scale benefits associated with a significantly enhanced global operating model, delivering greater shareholder value for both Perpetual and Pendal shareholders.
The transaction would see Perpetual’s AUM increase from A$90 billion to pro-forma AUM of A$201 billion, with AUM covering Global, US, UK, European and Australian equities, Multi Asset and Cash and Fixed Income strategies.
Tony D’Aloisio, Chairman of Perpetual and who will be Chairman of the combined group said, “We are pleased that Pendal’s Board of Directors has unanimously recommended that Pendal shareholders vote in favour of the Scheme, in the absence of any superior proposal and subject to the independent expert’s opinion that the scheme is in the best interests of shareholders.
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“Our Board and management see this as a defining acquisition that brings together two of Australia’s oldest and most respected active asset management brands to create a diversified global asset management business of substantial scale. We believe the combination represents a strategically and financially compelling opportunity for both sets of shareholders, with our respective strategic ambitions realised significantly sooner than would otherwise occur.
“Rob Adams, Chief Executive Officer and Managing Director of Perpetual will lead the combined group and up to three directors of Pendal will be invited to join the Perpetual Board.”
Mr Adams said, “The combined group will have premium, respected brands domestically and globally, strong cultural alignment based on the continued investment autonomy within each boutique, will be a global leader in active ESG asset management and will have a materially enlarged global distribution team to drive improved future growth.
“We believe the multi-boutique model that both firms espouse is the ideal model for active asset management, bringing together the strengths of both traditional and pure boutique business models, delivering scale, high-quality investment teams backed by deeply resourced distribution and global governance frameworks. We are delighted with the strong support by Pendal’s portfolio managers for the transaction and our model.
“We look forward to working collaboratively with the Pendal team, to supercharge our next growth phase and further enhance shareholder value together.”
