Pepper Money’s shares have jumped 25 per cent in morning trade following a confidential, non-binding, and conditional proposal from Challenger to acquire 100 per cent of the company. The acquisition would be executed via a scheme of arrangement at $2.60 per share. Pepper Money specialises in providing a range of finance options, including mortgages, asset finance, and commercial loans. Challenger is a financial services firm managing investments and retirement incomes.
Challenger confirmed its proposal in response to reporting in The Australian Financial Review’s Street Talk column. The proposal outlines that Challenger and Pepper Group would jointly acquire Pepper Money, with Pepper Group initially taking an interest in the acquiring entity at least equal to its current holding.
The offer to shareholders, excluding Pepper Group, would entail a cash consideration of $2.60 per share. This amount would be reduced by the final 2025 dividend and any special dividend paid or declared before the deal’s completion.
Pepper Money has cautioned that discussions are ongoing, and there is no guarantee that a binding agreement will materialise. Meanwhile, Challenger was down 5 per cent, making it among the biggest laggards on the ASX 200.
