Perpetual has responded to reports regarding “inbound interest” for its corporate trust business, Perpetual Corporate Trust (PCT).
On Wednesday (27 July), the company confirmed it has received two “unsolicited, non-binding, indicative offers”. However, it added that the offer are “highly conditional” and subject to due diligence and regulatory approvals.
“PCT is a high-quality business that consistently delivers strong, non-market linked revenue growth for Perpetual. In that context, Perpetual receives from time to time, unsolicited, non-binding, indicative proposals for PCT,” a statement issued on Wednesday read.
“Perpetual is not currently pursuing divestment of, nor is it engaged in a process with any party regarding the potential sale of any of its businesses. The unqiue combination of businesses within Perpetual provides earnings stability and optionality to invest through cycles, which creates significant value for our shareholders.”
The news comes after Perpetual reported this week that the funds under advice of Perpetual Private fell by 7 per cent during the fourth quarter to $17.4 billion.
Perpetual Private experienced $0.3 billion in positive net flows over the quarter to reach 18 consecutive half years of inflows. However, this was offset by a $1.5 billion reduction in funds under advice driven by negative investment market movements.
Additionally, the total funds under administration of Perpetual Corporate Trust increased by 3 per cent to $1.09 trillion.
“Perpetual has delivered a solid quarter in what has been a tough market for asset managers,” commented Perpetual CEO and MD Rob Adams.
“It is during such periods of difficult global investment markets that the benefits of Perpetual’s unique combination of businesses come through, bringing sector, client and geographic diversity, with our non-market linked revenues helping to provide a level of earnings stability through market cycles.”
As reported last week, Perpetual also noted that it is currently in “high-level, preliminary, confidential discussions” with Pendal over a potential acquisition.
“There is no certainty that the discussions will lead to any future agreement,” the firm said.
“We will keep the market informed in accordance with our continuous disclosure obligations.”
