Australia’s Perpetual has entered into exclusive talks with global investment firm KKR & Co for potential sale of its corporate trust and wealth management business, the financial services firm confirmed on Monday.
A potential deal would help KKR further expand its investment management footprint in Australia and Perpetual turn into an asset management business. Perpetual did not disclose any financial details of the proposed deal.
In December, top shareholder Washington H Soul Pattinson SOL.AX (Soul Patts) made a bid worth A$3.1 billion ($2.03 billion) for Perpetual, which the financial services company rejected.
The Soul Patts offer had then called for Perpetual’s asset management business to be spun off and distributed back to existing shareholders.
Perpetual, the A$2.65 billion financial services provider, flagged on Monday that there was no certainty that any sort of agreement would be achieved, adding that KKR had exclusivity until May 7.
Over the weekend, the Australian Financial Review reported that KKR was in exclusive talks with Perpetual and set to acquire its wealth and corporate trust operations.
KKR and Soul Patts did not immediately respond to Reuters’ requests for comments.
Perpetual in December announced a strategic review to improve shareholder returns and said it would explore benefits through a potential separation of its corporate trust and wealth management business.
The strategic review would include potential creation of a company focussed more on asset management business.
A potential offer from KKR would mean the second time the U.S.-based buyout firm is looking to either buy the company or a certain business.
KKR had bid for Perpetual in 2010 in a deal valuing the Australian company at A$1.75 billion.
($1 = 1.5267 Australian dollars)
Reuters
