Not much merit in Pendal acquisition: Perpetual investor

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Van Eck chief executive Arian Neiron says buying Pendal Group will not address Perpetual’s growth challenges.

Perpetual should cast the net wider for an acquisition that alleviates “structural headwinds”, according to an investor who has concerns about the fund manager’s approach to buy rival investment group Pendal.

Mr Neiron’s group is Perpetual 23rd largest shareholder, owning 0.26 per cent of the company through exchange-traded funds. “We would argue this is the last inorganic growth opportunity for Perpetual. How many can you do?” he said.Mr Neiron questioned whether Pendal represented the best deal for Perpetual if it was looking to expand globally, particularly at a time when many investment managers trade at lower valuations than Perpetual.

The terms of the bid would have resulted in Perpetual shareholders gaining slight majority control of the combined group by owning 52 per cent of the shares.deal made strategic sense

 

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