Soul Patts makes $3b bid for Perpetual

The news: Washington H. Soul Pattinson has submitted an offer to buy investment manager Perpetual in a deal worth $3.06 billion. Soul Patts, a major Perpetual shareholder, also said it supported today's announcement of a potential demerger of Perpetual's asset management, wealth management and corporate trust businesses.

The numbers: Soul Patts said it had submitted a proposal on 21 November to buy 100% of Perpetual shares and would undertake a simultaneous demerger of Perpetual Asset Management to be distributed to Perpetual shareholders. Soul Patts would retain the two other businesses in exchange for WHSP shares. The proposal has an indicative value of $3.06 billion, comprising the WHSP scrip worth $1.06 billion and the Perpetual Asset Management scrip worth an estimated $2 billion, Soul Patts said. The proposal would value PPT shares at $27, a 13.7% premium to today's close of $23.76 per share.

The context: Perpetual has been shifting its focus since posting a 42% profit drop in FY23, closing two funds and parting ways with a number of portfolio managers and support staff. In October the investment manager reaffirmed guidance and assured investors funds were stabilising after periods of market volatility and poor investor confidence.