Advisory roles shift gears at Perpetual, Luminis scores broader role
Washington H Soul Pattinson’s arrival on the scene has shaken things up at Perpetual.
Street Talk understands Luminis Partners’ role at the $2.9 billion financial services player has widened out to include broader advisory remit, assisting the board across the group. Meanwhile, sources said Bank of America and Goldman Sachs are staying on to advise on the optionality of the strategic review.
All three firms were first called in after Perpetual’s annual general meeting in October to conduct a strategic review, working closely with chief executive Rob Adams, corporate trust chief Richard “Dickie” McCarthy and wealth management boss Mark Smith. A potential divestment and/or demerger of the corporate trust and wealth management businesses was on the table, with its advisers trying to cajole interest in the business for weeks – including from KKR-controlled Colonial First State, sources told this column.
However, the revelation of a $3 billion takeover bid from major shareholder Soul Patts has shaken things up, marking a new stage in the battle for control of Perpetual. The Macquarie Capital-advised investment conglomerate pitched to acquire the corporate trust and wealth units with Soul Patts scrip, and for the asset management unit to remain listed as a separate entity.
The bid, lobbed on November 21, was swiftly rejected by the Perpetual board, which said it materially undervalued the company, but analysts believe the low-ball offer could attract other bidders. Since, Soul Patts has upped its stake to 14.99 per cent.
Perpetual shares have struggled in the first 12 months since it acquired its larger rival Pendal in a $2 billion deal. The market has doubted the move to increase its exposure to the out-of-favour asset management sector. That deal closed in January and was almost railroaded by Phil King’s Regal Partners and its private equity partner, BPEA EQT.
Perpetual’s corporate trust business has been the subject of private equity and trade player interest in the past, with Goldman Sachs around for advice.
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