ASX
131 days, 3 hours ago 
PPT
Perpetual Limited
Ceasing to be a substantial holder for IDX
Perpetual Limited has ceased to be a substantial holder in Integral Diagnostics Ltd, according to a recent filing.
ASX
138 days, 10 hours ago 
PPT
Perpetual Limited
Update on transaction with KKR
Perpetual's proposed sale of its Wealth Management and Corporate Trust businesses to KKR faces a setback as the Independent Expert cannot support the deal due to potential tax liabilities.
Worse than expected
 
ASX
139 days, 2 hours ago 
PPT
Perpetual Limited
Becoming a substantial holder for IDX
Perpetual Limited has become a substantial holder in Integral Diagnostics Ltd, acquiring a 5.39% voting power through its related bodies corporate.
ASX
142 days, 2 hours ago 
PPT
Perpetual Limited
Change in substantial holding for ORA
Perpetual Limited has filed a Notice of Change of Interests of Substantial Holder with Orora Limited (ORA), detailing changes in their voting power.
ASX
145 days, 3 hours ago 
PPT
Perpetual Limited
Change in substantial holding - ILU
Perpetual Limited and its related entities adjusted their holdings in Iluka Resources Limited (ILU) through a series of transactions between September 25, 2024 and December 6, 2024.
ASX
145 days, 11 hours ago 
PPT
Perpetual Limited
Update on Scheme with KKR
Perpetual Limited faces potential tax hurdles in its proposed acquisition by KKR, with the Australian Taxation Office indicating the deal could result in significant tax liabilities for the company and its shareholders.
Worse than expected
 
Delay expected
 
ASX
149 days, 3 hours ago 
PPT
Perpetual Limited
Ceasing to be a substantial holder for HSN
Perpetual Limited and its related bodies corporate are no longer substantial holders of Hansen Technologies Limited (HSN) as of December 4, 2024.
ASX
149 days, 6 hours ago 
PPT
Perpetual Limited
Notification regarding unquoted securities - PPT
Perpetual Limited issued 11,562 performance rights under its Long Term Incentive Plan on December 5, 2024, bringing the total number of unquoted performance rights to 2,193,692.
ASX
152 days, 3 hours ago 
PPT
Perpetual Limited
Becoming a substantial holder for WJL
Perpetual Limited and its associates have become a substantial holder in Webjet Group Limited, acquiring 19,820,343 ordinary shares representing a 5.049% voting power.
ASX
159 days, 2 hours ago 
PPT
Perpetual Limited
Ceasing to be a substantial holder for BLX
Perpetual Limited and its related entities have ceased to be a substantial shareholder in Beacon Lighting Group Limited (BLX), having sold a significant number of shares between June and November 2024.
PPT 
Perpetual Limited 
ASX

Update on transaction with KKR

Sentiment:
 Transaction Update
 16 December 2024 4:59 PM

Perpetual's proposed sale of its Wealth Management and Corporate Trust businesses to KKR faces a setback as the Independent Expert cannot support the deal due to potential tax liabilities.

Worse than expected
  The Independent Expert's inability to support the deal due to potential tax liabilities is a worse outcome than expected. 

Summary
  • Perpetual Limited is in the process of selling its Wealth Management and Corporate Trust businesses to KKR.
  • An Independent Expert has raised concerns about potential tax liabilities associated with the transaction.
  • The expert's concerns are significant enough that they cannot recommend the deal to shareholders.
  • Perpetual and KKR are still in discussions regarding the transaction.
  • Perpetual will continue to update the market as required.
Sentiment

Score: 3

Explanation: The sentiment is negative due to the Independent Expert's inability to support the deal, raising significant concerns about the transaction's viability.

Highlights
  • The Independent Expert has raised concerns about potential tax liabilities related to the proposed sale of Perpetual's Wealth Management and Corporate Trust businesses to KKR.
  • The expert's opinion is that the increased potential tax liabilities mean they cannot recommend the deal to shareholders.
  • Perpetual and KKR are still in discussions regarding the transaction.
Positives
  • Perpetual and KKR are continuing to engage constructively in relation to the transaction.
  • Perpetual will keep the market informed in-line with its continuous disclosure obligations.
Negatives
  • The Independent Expert cannot support the proposed sale of Perpetual's Wealth Management and Corporate Trust businesses to KKR.
  • The expert's concerns are due to the risk and magnitude of increased potential tax liabilities.
Risks
  • The proposed transaction with KKR may not proceed due to the Independent Expert's concerns.
  • There is a risk of increased potential tax liabilities if the transaction were to be implemented.
  • The uncertainty surrounding the transaction could negatively impact shareholder confidence.
Future Outlook

Perpetual and KKR are continuing to engage constructively in relation to the transaction, and Perpetual will keep the market informed.

Management Comments
  • Perpetual and KKR are continuing to engage constructively in relation to the transaction.
  • Shareholders are not required to take any action at this time.
Industry Context

This announcement highlights the complexities and risks involved in large corporate transactions, particularly those involving significant tax implications. It also underscores the importance of independent expert opinions in ensuring shareholder interests are protected. The deal is a significant one in the financial services sector, and its outcome will be closely watched by competitors and investors.

Comparison to Industry Standards
  • The use of an Independent Expert to assess the fairness of a scheme of arrangement is standard practice in Australian M&A transactions, similar to processes used in deals involving companies like AMP and IOOF.
  • The concerns raised by the Independent Expert regarding potential tax liabilities are not uncommon in complex transactions, and similar issues have been seen in deals involving companies like BHP and Rio Tinto.
  • The ongoing engagement between Perpetual and KKR is typical of situations where issues arise during the due diligence process, similar to negotiations seen in deals involving companies like Origin Energy and Brookfield.
Next Steps
  • Perpetual and KKR will continue discussions regarding the transaction.
  • Perpetual will keep the market informed of any further developments.
Key Dates
  • 10 December 2024: Perpetual's previous announcement regarding the proposed acquisition by KKR.
  • 17 December 2024: Perpetual provides an update on the transaction with KKR, noting the Independent Expert's concerns.
Keywords
Perpetual, KKR, Wealth Management, Corporate Trust, Acquisition, Scheme of Arrangement, Independent Expert, Tax Liabilities, Transaction
PPT 
Perpetual Limited 
ASX
Sector: Financial Services
 
Filings with Classifications
Worse than expected
14 April 2025 6:55 PM
Quarterly Business Update
  • Asset Management AUM decreased by 4% to approximately A$221 billion, indicating worse than expected performance in this segment.
Worse than expected
26 February 2025 4:57 PM
Half Yearly Report and Accounts
  • The NPAT was significantly lower than previous periods due to significant items including impairment losses, indicating worse than expected results.
Worse than expected
26 February 2025 4:56 PM
Half Yearly Report and Accounts
  • The net profit after tax attributable to equity holders of Perpetual Limited decreased to $12.0 million from $34.5 million year-over-year.
Delay expected
26 February 2025 4:56 PM
Half Yearly Report and Accounts
  • The Scheme Implementation Deed with KKR for the sale of Wealth Management and Corporate Trust businesses was terminated after receiving unfavorable views from the ATO and an adverse report from the Independent Expert.
Worse than expected
26 February 2025 4:54 PM
Half Year Results
  • The statutory NPAT decreased significantly due to significant items and an impairment in Asset Management, indicating worse than expected results.
Worse than expected
23 February 2025 5:35 PM
Company Update
  • The termination of the Scheme of Arrangement with KKR is worse than expected as it represents a failed transaction and incurs significant transaction and separation costs.
Worse than expected
16 December 2024 4:59 PM
Transaction Update
  • The Independent Expert's inability to support the deal due to potential tax liabilities is a worse outcome than expected.
Delay expected
9 December 2024 4:40 PM
Scheme Update
  • The document indicates a delay in the finalisation of the transaction due to ongoing engagement with the ATO regarding the tax treatment.
Worse than expected
9 December 2024 4:40 PM
Scheme Update
  • The potential for a A$488 million tax liability is significantly worse than expected.
  • The ATO's position that the entire cash proceeds could be deemed an unfranked dividend is worse than expected.
  • The uncertainty surrounding the transaction due to the ATO's stance is worse than expected.
Worse than expected
25 November 2024 1:17 AM
Shareholding Change Notice
  • The reduction in Perpetual Limited's shareholding in Kina Securities Limited indicates a negative market sentiment or a strategic decision by the investor to divest from the company.
Worse than expected
21 November 2024 12:33 AM
Change of Substantial Holding Notice
  • The decrease in Perpetual Limited's voting power in Healius Limited from 14.505% to 13.467% indicates a reduction in their stake, which is worse than maintaining or increasing their holding.
Worse than expected
18 November 2024 12:49 AM
Substantial Holder Notice
  • The results were worse than expected because Perpetual Limited decreased its stake in Infomedia Limited, indicating a potential loss of confidence in the company's future prospects.
Worse than expected
17 October 2024 12:43 AM
Annual General Meeting Results
  • The failure of the remuneration report and the election of a non-board endorsed director candidate represent worse-than-expected outcomes for Perpetual Limited.
Worse than expected
16 October 2024 6:54 PM
Annual Report
  • Despite overall revenue and profit growth, significant net outflows from the Asset Management division were worse than anticipated, leading to a substantial impairment charge and impacting the final dividend.
Delay expected
16 October 2024 6:54 PM
Annual Report
  • The timeline for the shareholder vote on the KKR scheme is subject to regulatory approvals and finalization of tax and duty discussions, potentially causing a delay from the initial target of early 2025.
Better than expected
16 October 2024 5:16 PM
Quarterly Business Update
  • The 3% increase in AUM to A$222 billion exceeded expectations, driven by positive market movements and net inflows.
Delay expected
12 September 2024 6:43 PM
Sustainability Report
  • The development of a cultural diversity target was paused due to the Strategic Review and potential separation of the Wealth Management and Corporate Trust businesses.
  • Some community giving activities were paused due to reduced bandwidth resulting from the Strategic Review.
Worse than expected
12 September 2024 6:43 PM
Annual Report
  • While UPAT increased, a significant non-cash impairment charge and other significant items resulted in a statutory net loss, indicating worse-than-expected results.
Delay expected
12 September 2024 6:35 PM
Annual General Meeting Notice
  • The allocation of the LTI award to the new CEO is contingent upon the completion of the transaction, which could cause a delay in the award's allocation.
Worse than expected
12 September 2024 6:35 PM
Annual General Meeting Notice
  • The statutory net loss after tax of A$472.2 million was significantly worse than expected due to substantial non-cash impairments and other significant items.
Worse than expected
23 July 2024 7:01 PM
Quarterly Business Update
  • Asset Management AUM decreased by approximately 5% to A$215 billion, impacted by net outflows, market movements, and currency fluctuations.
Better than expected
7 May 2024 8:35 PM
Strategic Review Announcement
  • The strategic review resulted in a cash offer that the board considers superior to other alternatives.
  • The transaction unlocks significant value for shareholders through the sale of Wealth Management and Corporate Trust at attractive multiples.

Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.