Challenger reduces takeover offer for Pepper Money on ‘deteriorating’ market conditions
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The news: Investment fund Challenger has slashed the value of its proposed takeover of non-bank lender Pepper Money due to the “deterioration in both market conditions and operating environment”.
The numbers: Under the revised non-binding and confidential proposal, Challenger has reduced the offer price from $2.60 per share to $2.25 per share.
The context: Challenger, which announced its original bid on 9 February, said the revised proposal represents its best and final offer in the absence of a superior proposal.
It noted that discussions between the companies remain “incomplete” and there is no certainty of a transaction.
Pepper Money said its independent board committee will consider the revised proposal.
The offer is being made jointly with Pepper Group ANZ HoldCo and any deal would see Challenger acquire no more than 25% of the target.
