Australia's Pendal receives US$1.8bil takeover bid from Perpetual, shares soar

FILE PHOTO: A board displaying stock prices is seen at the Australian Securities Exchange (ASX) in Sydney, Australia, Feb. 9, 2018. REUTERS/David Gray/File Photo

AUSTRALIA's Pendal Group said on Monday it had received a non-binding takeover offer from asset manager Perpetual Ltd valuing it at A$2.4 billion ($1.80 billion), sending shares of the investment management firm up to 24% higher.

Under the proposal, Pendal's shareholders will receive one Perpetual share for every 7.5 Pendal shares they hold, along with A$1.67 in cash, taking the offer price to A$6.23 per share, a premium of 39.2% to the stock's last close of A$4.48.