Regal scraps Pacific Current takeover, board disappoints
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The news: Investment manager Regal Partners has dropped a proposal to acquire asset manager Pacific Current Group, citing poor engagement from Pacific's board. Regal highlighted that Pacific's financial performance was not an issue.
The numbers: Pacific Current Group is a multi-boutique asset management firm with a market cap of $577.6 million. Regal's market cap is $563.6 million. Both stocks were trading flat at 11am AEST.
The context: Regal submitted a non-binding indicative proposal to acquire all of Pacific's ordinary shares in March 2023. Regal said it received high level due diligence information from Pacific Current and re-affirmed its NBIO in mid-September, but has now decided to scrap the proposal.
What they said: "Regal has been consistently disappointed with the engagement by the Pacific Current board since its initial NBIO in March 2023. Based on the manner in which Regal’s Re-affirmed NBIO has been received, Regal has little confidence in the process being run," Regal said in a statement.
"Regal continues to be a substantial shareholder in Pacific Current and remains excited about the prospects of its underlying affiliates."
The source: ASX Announcement
