Perpetual said it will pursue the sale of its wealth management business after rejecting the latest offer from KKR & Co., as the Australian financial services firm attempts to lure new offers.
The company has ended talks with KKR, according to a Perpetual statement Monday. This is the right course of action to deliver long-term value to shareholders, CEO Bernard Reilly said in the statement.
The stock opened about 1.7% lower in Sydney.
Perpetual had been considering another offer from KKR to buy its wealth management and corporate trust businesses after a deal last year was scuppered by an unexpected tax ruling.
The deal activity comes amid a renewed focus from overseas investors in Australia’s wealth sector, with Insignia Financial fielding a trio of takeover bids.
Perpetual said it will maintain its push to separate its businesses to establish standalone and more autonomous units. It will also implement a new operating model for its asset management division and deliver on an improved cost reduction program.
See also: Janus Henderson eyes Saudi Arabia for Middle East expansion
KKR and Bain Capital have been among the firms looking to tap into Australian high-net worth wealth and its fast-growing pensions pool.
