Completion of deal would see prominent non-bank lender delisted from Australian Stock Exchange
Pepper Money has confirmed that it has received a 100% takeover that could see the prominent non-bank lender delisted from the Australian Stock Exchange (ASX).
Under the proposed deal, investment manager Challenger Limited will team up with Pepper Group ANZ HoldCo Limited to jointly acquire Pepper Money (pictured: Pepper Money chief executive Mario Rehayem).
“Pepper Group will initially acquire an interest in the acquiring entity that is at least equal to its current interest in Pepper Money,” Challenger announced.
An investment in Pepper Money is expected to provide Challenger with strategic, long-term rights to access fixed-income assets to support growth and returns.
“The transaction is proposed to be structured as a scheme of arrangement under which, if completed Challenger would hold no more than 25% of total Pepper Money shares,” added Challenger.
Confirming the offer in an ASX statement, Pepper Money revealed that Pepper Money shareholders will receive a $2.60 per share under the proposal, less the final dividend in respect of 2025 and any special dividend paid or declared.
“After due consideration and acting in the interest of all Pepper Money shareholders, the (Independent Board Committee) granted Challenger exclusivity to undertake confirmatory due diligence and progress relevant transaction documentation in order to present a more certain proposal," said Pepper Money.
“Discussions are ongoing, however there is no certainty that a more certain proposal will be forthcoming or that the Indicative Proposal will result in a definitive agreement. Pepper Money will continue to update the market in accordance with its continuous disclosure obligations.”
Pepper Money has taken on Jefferies Australia and Reunion Capital Partners as financial advisors and Gilbert & Tobin as its legal advisor.
Pepper Money shares rocketed up over 25% to $2.23 on the news. On a year-on-year basis, the stock is up over 45%.
