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Investing.com-- Shares of Perpetual Ltd (ASX:PPT) declined on Monday after the company said it terminated takeover discussions with private equity firm KKR & Co (NYSE:KKR) over the proposed sale of its wealth management and corporate trust divisions.
Perpetual confirmed the termination of its scheme of arrangement with KKR, originally agreed upon in May 2024, following an independent expert’s report deeming the proposed deal not in shareholders’ best interests.
Despite months of discussions and revised non-binding proposals from KKR, Perpetual’s board concluded that none of the offers met shareholder expectations, the company said in a statement.
Perpetual shares fell as much as 4.4% to A$22.72 in early trading on Monday
In December 2024, Perpetual had announced a deal to sell these units to KKR for A$2.2 billion ($1.4 billion). However, the Australian Taxation Office later determined that the transaction would incur a significantly higher than anticipated tax bill.
Perpetual had received a fresh proposal from KKR last week, saying it was reviewing the revised offer, but had not provided any financial details.
Perpetual now plans to proceed separately to sell its wealth management arm.
"The Board is focused on a clear pathway to reduce debt over the short to medium term," the company said in a statement.
Perpetual has already incurred A$42.6 million in transaction and separation costs through 2024 and aims to present more details on cost-cutting and its balance sheet during its first-half results on February 27.