(11 August 2017 – Australia) Non-bank lender Pepper has agreed to A$655 million takeover offer from US-based private equity firm KKR.
Pepper said it would recommend shareholders accept the offer of $3.60 per share from KKR, which represents around a five percent premium on its current share price.
“After careful consideration, we believe this offer is consistent with the board’s efforts to deliver maximum value for shareholders. 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,” Pepper chairman Seumas Dawes said.
He, alongside CEO Michael Culhane and chief financial officer Cameron Small, own a combined 35.5 per cent of the company, have advised they will vote in favour of the deal.
Last year, Pepper posted a 26 percent lift in profit to A$61 million, as a result of increased home loan originations in Australia and South Korea.
The firm has expanded through a suite of acquisitions, and expanded its mortgage servicing business, with combined lending and servicing assets under management (AUM) soaring to A$52 billion last year, compared to A$4 billion in 2012.
The firm’s distressed debt administration service in Europe has grown by 10 percent to A$45 billion.