The Perpetual Ltd (ASX: PPT) share price is frozen during Monday morning following the company’s $2.4 billion takeover offer.
At the time of writing, the fund manager’s shares are halted from Friday’s closing price of $34.23.
What’s going on with Perpetual shares?
Investors will have to wait for a pending announcement by the company before Perpetual shares open up for trading.
Earlier today, Pendal Group Ltd (ASX: PDL) advised that it received a conditional, non-binding indicative proposal from Perpetual.
The latter is hoping to acquire 100% of Pendal shares by way of a scheme of arrangement.
According to the details, the indicative proposal has valued $6.23 per Pendal share based on its closing price on Friday. This represents a 35.4% premium to its 30-day volume weighted average price prior to 1 April.
The consideration is for 1 Perpetual share for every 7.5 Pendal shares, along with a $1.67 cash offer for each Pendal share owned.
While the Pendal board is assessing the offer, Perpetual is preparing to release its own statement to the ASX.
It’s worth noting that the proposal from Perpetual is subject to a number of conditions that need to be met. This includes due diligence, negotiation and execution of transaction documentation, regulatory approvals and no material adverse change to Pendal.
Perpetual share price snapshot
A rollercoaster 12 months has led the Perpetual share price to register a 3% gain for the period.
However, after touching a 52-week low of $31.96 in late January, the company’s shares are down 5% year to date.
Perpetual has a price-to-earnings (P/E) ratio of 28.84 and commands a market capitalisation of roughly $1.94 billion.
The post Perpetual (ASX:PPT) share price halted amid Pendal takeover bid appeared first on The Motley Fool Australia.
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More reading
- ASX 200 (ASX:XJO): Perpetual makes Pendal offer, Iluka hits record high
- Pendal (ASX:PDL) share price rockets 23% on $2.4b takeover approach
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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