Powered by MOMENTUM MEDIA
subscribe to our newsletter

Pepper to be snapped up for $675m

California-based investment manager KKR will pay a significant premium to acquire non-bank lender Pepper after the group today announced that it has entered into a scheme implementation deed.

The board of the ASX-listed non-bank lender announced on 10 August that it has entered into a scheme implementation deed with an entity owned by California-based KKR Credit Advisors.

The KKR entity, known as Red Hot Australia Bidco, has proposed to acquire all of Pepper’s shares. If granted, Pepper shareholders will receive a cash payment of $3.60 per Pepper share plus a 3 cent dividend.

With more than 181 million shares on issue, KKR will acquire Pepper for close to $675.9 million, $37 million more than the current market cap of $638 million. Pepper shares were valued at $3.43 before the market opened this morning. 

“After careful consideration, we believe this offer is consistent with the board’s efforts to deliver maximum value for shareholders,” Pepper group chairman Seumas Dawes said.

Advertisement
Advertisement

“We believe it represents a compelling opportunity for shareholders, allowing them to choose to either obtain liquidity for their shares at an attractive valuation or remain invested in the Pepper business.”

Mr Dawes controls 29.7 per cent of total shares.

Shareholders may also choose a scrip option, enabling them to retain an interest in the Pepper business.

Pepper’s board has recommended shareholders vote in favour of the scheme, which — in addition to shareholder approval — is subject to a number of conditions, such as Foreign Investment Review Board (FIRB) approval and the approval of other local and foreign regulatory bodies, given Pepper’s business interests in Ireland, Korea and the UK.

[Related: Pepper takeover reflects 'latent' strength of non-banks]

PROMOTED CONTENT


Pepper to be snapped up for $675m
mortgagebusiness

Latest News

Lenders have begun offering disaster relief packages for customers impacted by Tropical Cyclone Seroja in Western Australia. ...

Boutique lender Apickle has launched new finance product for SMEs using eftpos that enable them to borrow up to $200,000 without an asset se...

The federal government said it is pleased that higher confidence levels have led to a strong housing market but said that it is “keeping a...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Tackling the home deposit challenge

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.