Done deal: Perpetual completes $2.5 billion acquisition of Pendal

Done deal: Perpetual completes $2.5 billion acquisition of Pendal

Perpetual managing director and CEO Rob Adams

Sydney-based investment firm Perpetual’s (ASX: PPT) $2.5 billion takeover deal for rival Pendal (ASX: PDL) has been finalised today, bringing the former’s total assets under management to roughly $200 billion.

The offer, which was accepted five months ago, has seen Perpetual acquire 100 per cent of Pendal, with shareholders receiving one PPT share for every 7.5 PDL shares held plus $1.976 cash for each Pendal share.

The deal brings to an end a long-running saga for Pendal, which previously knocked back a $2.4 billion proposal from Perpetual in April 2022, as well as multiple offers from a Regal Partners (ASX: RPL) consortium valuing that company at $1.7 billion and $2.1 billion.

“Today is the beginning of an exciting new chapter for both businesses, and collectively our people, our clients and our shareholders,” Perpetual managing director and CEO Rob Adams says.

“The Perpetual and Pendal businesses are stronger together and are better positioned to invest in and drive our future growth through the expansion of investment capabilities, while benefiting from a step change in scale, ESG capability and our significantly enhanced global operating model. 

“Pleasingly, the client consent process has proven to be very successful with Pendal achieving consents from over 98 per cent of Pendal clients (as at 9 January 2023), by client revenue, for those clients whose consent was required to the change of control.”

In conjunction with the announcement, Perpetual also confirmed Pendal directors – Christopher Jones and Kathryn Matthews – have joined the company’s board from today.

A new executive committee unveiled almost two months ago has also come into effect, with Amanda Gillespie leading the asset management business in Australia, putting her on par with colleague David Lane (the US asset manager) and Alexandra Altinger - who is the CEO of J Hambro Capital Management - leading the UK, European and Asian division.

Additional updated roles include former Perpetual executive people and culture general manager Paul Chasemore, who has joined the executive committee as chief people officer, as well ex-Perpetual chief risk officer Sam Mosse, who will now take on the broader role of chief risk and sustainability officer.

Mark Smith is continuing to lead Perpetual Private and Richard McCarthy will also continue to run the Perpetual Corporate Trust, both joining chief financial officer (CFO) Chris Green and chief operating officer (COO) Amanda Gazal to round out the committee.

“With the transaction now finalised, the new leadership team is focused on delivering our global growth ambitions and executing on the strategic and financial benefits afforded by this transformational acquisition, including delivery of enhanced scale efficiencies; growth of our global distribution footprint; building on our leadership in ESG and realising A$60 million in expected run-rate pre-tax expense synergies,” Adams said.

Perpetual chairman Tony D’Aloisio adds the deal has created a leading global multi-boutique asset manager with significant scale, diversified investment strategies, world-class ESG capabilities and a stronger global distribution capability.

“We welcome the talented Pendal teams to Perpetual and look forward to supporting Rob and the executive team as they execute and deliver on our global growth plans to create shareholder value,” D’Aloisio says.

Shares in PPT are up 1.3 per cent at $26.55 each at 12:51pm.

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