‘Deteriorating market conditions’ cited by potential take-private suitor
Challenger Limited, the investment manager hoping to take non-bank lender Pepper Money private, has revised its offer from $2.6 per share down to $2.25 per share.
“Challenger has now advised that due to the deterioration in both market conditions and the operating environment, it is not prepared to proceed with the Original Proposal,” Pepper Money said in an ASX statement.
“Challenger has expressed the Revised Proposal to be its best and final offer, in the absence of a superior proposal,” the statement added.
The initial offer was first confirmed in early February. Under the proposed deal, investment manager Challenger Limited will team up with Pepper Group ANZ HoldCo Limited to jointly acquire Pepper Money.
Pepper Money said at the time: “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’s Independent Board Committee said it is considering the revised proposal and will “update the market in accordance with its continuous disclosure obligations”.
Announcing today’s revised offer, Challenger said that “discussions remain incomplete and there is no certainty that the Revised Proposal will eventuate in a transaction”.
