Why are Pendal shares in a trading halt?

a man in a suit holds up a hand and a stop sign at a roadblock positioned over a bitumen road .a man in a suit holds up a hand and a stop sign at a roadblock positioned over a bitumen road .

Shares of Pendal Group Ltd (ASX: PDL) are in a trading halt on Tuesday.

Whilst the company opened the session, trading of its stock was paused due to a company-requested trading halt just before midday.

Before the halt, investors had bid Pendal shares more than 4% higher to $4.29 apiece.

Why are Pendal shares on ice?

The company made the request amid ASX Listing Rule 17.1, asking for an immediate one-day halt from 19 July.

Pendal says this is due to a pending announcement on a potential transaction. It said:

[T]he trading halt is requested for the purpose of issuing an announcement to the market concerning
discussions in relation to a potential control transaction.

PDL expects that the ASX Announcement will be made as soon as possible, and in any event,
prior to the open of trading on 20 July 2022.

The ASX granted the request shortly after and Pendal shares have been on ice ever since.

As such, investors will now wait for the next update.

In the last 12 months, Pendal has sunk more than 46% into the red. It bounced from 52-week lows last week after a year of drawdown.

It now trades well below its pre-pandemic levels, as illustrated below.

TradingView Chart

The post Why are Pendal shares in a trading halt? appeared first on The Motley Fool Australia.

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*Returns as of July 1 2022

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Motley Fool contributor Zach Bristow 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 Scott Phillips.

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