Platinum Asset Management shares soar on Regal offer
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More news: Shares in Platinum Asset Management rocketed at the start of trading on the ASX after the investment manager confirmed it received a takeover proposal by ASX rival Regal Partners.
Platinum shares rose 15.2% to $1.14 by 10:30am AEST while Regal shares edged up 0.9% to $3.33.
In a separate release to the market, Regal noted that the two companies have been "constructively working together to firm up the merits of the combination".
What they said: "The discussions are preliminary and incomplete, and there is no certainty at this time that they will lead to a transaction," Regal said.
Regal Partners makes takeover bid for Platinum Asset Management
The news: Platinum Asset Management has received a takeover proposal by rival ASX investment manager Regal Partners.
The numbers: Under the proposal, Platinum shareholders would receive 0.274 Regal shares for each Platinum share held. Prior to the implementation of the scheme of arrangement, Platinum would be permitted to pay a fully franked special dividend to its shareholders, from its own cash reserves, of 24 cents per Platinum share.
The consideration would be reduced for Platinum's FY24 final dividend, which was announced as 4 cents per Platinum share last month, and any other dividend paid by Platinum, other than the permitted 24 cents per Platinum share special dividend.
The context: Platinum said its board is "considering the merits" of the proposal, including in relation to Regal's assessment of the standalone inherent value of Platinum "in a change of control context", and with regards to Platinum's current turnaround strategy, outlook, and planned future growth initiatives.
It said the board will also consider "the absolute and relative value of the Regal share consideration being proposed, the potential business costs and benefits of any combination, as well as Platinum's own capital management plans and alternative strategic options".
The sources: ASX announcement, ASX announcement
