Fund Company Update

Perpetual and Pendal go to court over takeover plans

Pendal and Perpetual are going to the Supreme Court of NSW this month over whether the Pendal shareholder meeting to approve the Perpetual takeover should go ahead and the scheme booklet provided to investors.

The companies are seeking declarations of the court on specific matters relating to the operation of the Scheme of Implementation Deed in the event that Perpetual breaches the deed or indicates it will do so. Perpetual has reportedly requested a delay or deferral, which Pendal did not wish to accept.

More recently, the terms of the deal have been amended, with Pendal allowed to claim more than a break fee if the deal is terminated - instead of just $23 million, Pendal would be able to seek orders to enforce Perpetual’s obligations to complete the scheme.

Revisions are being made to the cash and scrip considerations of the transaction, both being reduced. Pendal shareholders will now receive one Perpetual share for every seven Pendal shares, plus $1.65 per share. Both companies entered a trading halt pending the court decision.

Equity Trustees to acquire Australian Executor Trustees

Equity Trustees has been given ministerial approval to buy Insignia Financial’s Australian Executor Trustees (AET) for $135 million. Conditions of the sale are in progress, with a target of 30 November 2022.

NAB closing NAB Asset Servicing

After years of losing mandates, NAB Asset Servicing is being wound up by NAB. NAB has been trying to sell the asset servicing arm for several years without success. The closure is planned for 2025.