(Reuters) – Perpetual said on Wednesday that giant KKR & Co (NYSE:) would acquire its asset management and corporate trusts business for A$2.18 billion ($1.43 billion), leaving the Australian company’s shares providing financial services will fall to a five-month minimum.
Perpetual also announced the departure of its CEO and managing director Rob Adams, ending a months-long strategic review of the company.
The deal comes 16 months after Perpetual acquired smaller fund manager Pendal for $1.6 billion and is currently being split up, with KKR buying the corporate and asset management divisions.
Shares in the Australian company fell 6.5% to A$22.47 as of 0134 GMT, hitting their lowest level since Dec. 5.
“The strategic review was extremely thorough and considered a range of options, including extensive engagement with several senior parties and potential bidders,” said Chairman Tony D’Aloisio.
The buyout will see Perpetual become a separate asset management company with approximately A$227 billion of assets under management and help the global investment firm expand its presence in Australia.
The company has been active in the mergers and acquisitions market in recent times, with suitors in both the local and overseas markets keen to cash in on the fund manager.
In December, Washington H.’s major shareholder, Soul Patts, made an A$3.1 billion bid for Perpetual, but it was rejected.
The company also rejected a A$1.7 billion takeover bid from a consortium that included local portfolio manager Regal Partners at the end of 2022.
($1 = 1.5209 Australian dollars)
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