Platinum Asset Management Evaluates Takeover Proposal from Regal Partners
PLATINUM ASSET MANAGEMENT LIMITED (PTM) Share Update September 2024 Monday 16th
Platinum Asset Management Receives Takeover Proposal from Regal Partners
Platinum Asset Management Limited (ASX:PTM) has announced that it has received an unsolicited, non-binding, indicative proposal from Regal Partners Limited to acquire all of its shares through a scheme of arrangement.
Instant Summary:
- Platinum received an unsolicited proposal from Regal Partners.
- Proposal includes 0.274 Regal shares for each Platinum share.
- Platinum shareholders to receive a special dividend of $0.24 per share.
- Proposal subject to due diligence and multiple approvals.
- Platinum Board is evaluating the proposal's merits.
Proposal Details
Platinum Asset Management Limited (ASX:PTM) has confirmed receiving an unsolicited, non-binding, indicative proposal from Regal Partners Limited to acquire all Platinum shares via a scheme of arrangement. Under this proposal, Platinum shareholders would receive 0.274 Regal shares for each Platinum share held.
Additionally, before the implementation of the scheme, Platinum would be allowed to pay a fully franked special dividend of $0.24 per share from its cash reserves. However, this consideration would be reduced by Platinum's FY24 final dividend of $0.04 per share and any other dividends paid by Platinum, except the special dividend.
The proposal is subject to several conditions, including granting due diligence, the Platinum Board recommending the proposal to shareholders, and entering a mutually acceptable scheme implementation deed. The scheme would also require shareholder, court, and regulatory approvals.
Board's Consideration
The Platinum Board is currently assessing the proposal's merits, considering the inherent value of Platinum in a change of control context. This assessment includes Platinum's current turnaround strategy, outlook, and future growth plans. The Board will also evaluate the absolute and relative value of the Regal share consideration, potential business costs and benefits of the combination, and Platinum's capital management plans and alternative strategic options.
Platinum has assured that this proposal should not impact its unitholders and that its investment philosophy and process will remain unchanged.
Next Steps
Shareholders are advised that there is no guarantee that discussions with Regal will progress or that due diligence access will be granted. Even if granted, there is no certainty that Regal will submit a binding proposal that the Platinum Board will recommend. Platinum shareholders are advised not to take any action concerning the proposal at this stage. The Platinum Board will provide updates under its continuous disclosure obligations.
Platinum has appointed Jefferies Australia as its financial adviser and Allens as its legal adviser.
The proposal from Regal Partners could significantly impact Platinum Asset Management's stock price. If the proposal proceeds, shareholders could benefit from the special dividend and potential share value increase. However, the proposal's non-binding nature and multiple conditions introduce uncertainty, which may cause volatility in Platinum's stock price. Investors should closely monitor the situation as it develops.
Investor Reaction:
Analysts are likely to have mixed reactions to the proposal. Some may see it as a positive opportunity for Platinum shareholders to gain value through the special dividend and Regal shares. Others may be cautious due to the proposal's non-binding nature and the numerous conditions that must be met. Overall, investor sentiment will hinge on further developments and the Platinum Board's recommendations.
Conclusion:
Investors should stay informed about the progress of the proposal and the Platinum Board's evaluations. The outcome of this potential takeover could have significant implications for Platinum's stock and its future strategic direction. As always, investors should consider their positions carefully and stay updated with the latest information.