Deal not done until it’s done, after all
ASX-listed non-bank lender Pepper Money has walked away from takeover talks with Challenger Limited after the latter downwardly revised its per-share offer.
Takeover talks were first announced in early February, when investment manager Challenger proposed to take Pepper Money, which is headed by chief executive Mario Rehayem (pictured), private at $2.6 per share.
Challenger later cut the offer to $2.25 per share, citing a deterioration in both market conditions and the operating environment.
Pepper Money said in a Wednesday ASX statement: “The Company advised in communications to the market at that time that its Independent Board Committee (IBC) would consider the revised proposal. Following its consideration of the proposal and consultation with shareholders, the IBC has determined that the Revised Proposal is not reasonably capable of execution. Accordingly, the IBC has decided not to proceed with the transaction and discussions with Challenger in relation to the Revised Proposal have now ceased.
Pepper Money referred to recent financial results showing applications up by 21% year on year and originations 34% higher. “The business is well positioned and continues to capitalise on growth opportunities,” said the group.
Challenger’s managing director and chief executive Nick Hamilton said in a statement: "I would like to thank the Pepper Money management team for their engagement throughout the process and we look forward to continuing our commercial relationship.”
“The deal’s not done until it’s done,” Rehayem told MPA in a recent chat. Turns out he was right.
