Perpetual to be broken up, sold to KKR: AFR
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The news: Asset manager Perpetual will be broken up and sold to private equity firm KKR as part of the biggest overhaul in its history, the Australian Financial Review reported.
The numbers: KKR will take the Perpetual name as part of the transaction, along with Perpetual's corporate trust and wealth management businesses, in a deal worth more than $1.5 billion, people familiar with the process told the AFR.
The Perpetual businesses and brand are expected to be placed into KKR’s Asia Fund IV, a $US15 billion ($23 billion) raise invested across the Asia Pacific, including Australia.
The context: ASX-listed Perpetual will continue as a funds management business, without its 138-year-old brand name, the sources said. Perpetual is expected to use the proceeds from the sale to pay debt and tax, with leftover capital to be returned to shareholders.
Perpetual shares climbed on the ASX last week after the investment manager disclosed that it had entered exclusive talks with KKR over a potential takeover.
Filings with Australia’s corporate regulator showed that KKR has set up separate companies to own Perpetual’s corporate trust and wealth management businesses.
Today, Perpetual is due to announce the outcome of its strategic review of the two arms that was announced in December 2023.
The source: AFR
