Pendal (ASX:PDL) has received a non-binding takeover bid from investment manager Perpetual (ASX:PPT).
Under the indicative proposal, Perpetual would acquire all shares in Pendal for a consideration of 1 Perpetual share for every 7.5 Pendal shares, plus $1.67 cash for each Pendal share. This represents an indicative value of $6.23 per Pendal share, based on the closing price of Perpetual shares last Friday.
Based on the proposed consideration, Pendal shareholders would own around 48 per cent of the merged entity.
The Pendal board notes that the proposal has been put forward at a time when geopolitical instability, economic impacts of Covid-19 and broader market volatility has disrupted the global markets in which Pendal operates.
It also said this has materially impacted the trading values of global asset managers which may not currently reflect their long-term potential to deliver attractive returns to investors.
Pendal said the board will consider all factors to ensure it acts in the best interests of shareholders as it assesses the proposal, as well as assessing alternative opportunities for Pendal.
Shares in Pendal (ASX:PDL) are trading 21.2 per cent higher at $5.43. Shares in Perpetual (ASX:PPT) are in a trading halt, and last traded at $34.23.