The specialist lender first announced in August 2017 that it has entered into an implementation deed with KKR Credit Advisors, with the investment manager paying $675 million to acquire the non-bank lender. The initial proposal from KKR was a cash payment of $3.60 per share as well as a 3 cent dividend.
Pepper Group’s directors then recommended that its shareholders vote in favour of the KKR takeover, which would see Pepper de-list from the ASX.
Given the new deal, which would value shares at $3.70 each, the board has once again called on shareholders to vote in favour of the scheme, in the absence of a superior proposal.
Payment of the special dividend would not reportedly reduce the cash offer under the scheme, and would not reduce the interim dividend of 3 cents per share (due to be paid on 5 October).
KKR Credit has also stated that the improved proposal will be the investment manager’s final offer and will not be increased should there be no superior proposal present.
[Related: Pepper to consolidate rather than invest]
If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.