Perpetual Limited (ASX: PPT) has terminated its Scheme of Arrangement with private equity firm KKR, following an independent expert’s conclusion that the deal was not in the best interests of shareholders. As a result, Perpetual’s board has withdrawn its recommendation for the $2.175 billion transaction, and the Scheme Implementation Deed (SID) has been cancelled with no break fee payable.
The two companies had engaged in extensive discussions, including revised non-binding proposals from KKR. However, Perpetual determined that the revised terms and conditions were not favourable for shareholders, leading to the formal end of negotiations. KKR has contested Perpetual’s stance on the break fee and has reserved its rights to seek damages, though Perpetual maintains that no fee is payable.
Following the collapse of the KKR deal, Perpetual will proceed with the separation of its three core businesses—Wealth Management, Asset Management, and Corporate Trust—and has confirmed that it will now pursue a sale of its Wealth Management division. The company sees this divestment as an opportunity to strengthen its balance sheet and reinvest in Asset Management and Corporate Trust growth initiatives.
Chairman Gregory Cooper will officially take over from Tony D’Aloisio after Perpetual’s half-year results announcement on 27 February 2025. The company has also disclosed that it incurred $42.6 million in transaction and separation costs over the past year in preparation for the now-abandoned scheme.
Perpetual is a global financial services firm, operating a multi-boutique asset management business, as well as wealth management and trustee services. The company owns leading brands such as Pendal, Barrow Hanley, J O Hambro, Regnan, Trillium, and TSW, servicing clients across Australia, Asia, Europe, and the US.
