Pendal Group (ASX:PDL) raises $190 million to fund US acquisition

Company News

by Michael Luu

Investment manager Pendal Group (ASX:PDL) has successfully raised $190 million from institutional investors.

The $2.4 billion investor offered 27.9 million new shares under a fully underwritten institutional placement. Under the scheme, Pendal set the issue price for the new shares at $6.80 per share, which is 37 cents lower than the last closing price of $7.17 accounting for the dividend payment.

The firm said that the offer received an overwhelming welcome from investors, as demand for the new shares surpassed the company’s estimate.

Pendal’s CEO Nick Good described the support for the equity raising, “The response represents a clear endorsement of Pendal’s strategic acquisition of TSW, a business which is highly complementary to Pendal.”

Pendal Group has set the capital raising as an instrument to finance the $413 million purchase of Thompson, Siegel & Walmsley.

Pendal justified the acquisition plan, “It is expected to deliver significant benefits for Pendal shareholders”.

The proposed acquisition of the Virginia-based business is expected to expand operations and diversify the company’s investment portfolio in the US market, hence boosting earnings and shareholder value.

Shares in Pendal Group (ASX:PDL) are trading 0.9 per cent lower at 7.28