SYDNEY, AUSTRALIA: Washington H. Soul Pattinson and Company (WHSP), a diversified investment company and a large shareholder of Perpetual Limited, has made an indicative proposal to acquire 100% of Perpetual and demerge its asset management business, Perpetual Asset Management (PAM), to existing Perpetual shareholders.

WHSP would retain the other two businesses including Perpetual Wealth Management (WM) and Perpetual Corporate Trust (PCT), in exchange for WHSP shares. WHSP would also assume all group net debt and stranded group costs.

The proposal values Perpetual at $3.06 billion, or $27.00 per share, which is a significant premium to the market prices before the announcement. The implied value for WM and PCT is $1.885 billion, which is a 56.4% premium to the market-implied value as at 13 November 2023.

WHSP welcomes Perpetual’s intention to explore a potential separation of its businesses and believes its proposal is in the best interests of all shareholders.

WHSP says the proposal would unlock value in a tax efficient structure, while allowing shareholders to retain exposure to each of Perpetual’s three businesses.

WHSP also says the proposal would provide diversification, liquidity, and wealth creation for shareholders, as well as strategic flexibility for Perpetual. WHSP has been a long-term investor in Perpetual and currently holds interests of up to 9.9% over the ordinary shares in Perpetual.