Challenger Cuts Pepper Money Takeover Bid to A$1.01 Billion
Challenger lowered its bid for Pepper Money to A$1.01 billion citing poor market conditions. The A$2.25 per share offer would see the lender go private.
Investment manager Challenger has lowered its takeover bid for Australia-based non-banking lender Pepper Money, citing a decline in market conditions and the broader operating environment. The revised proposal values the company at A$1.01 billion ($713.7 million), down from the previous valuation of A$1.16 billion. Under the new terms, shareholders would receive A$2.25 per share, a reduction from the A$2.60 per share offered in February.
Pepper Money stated that the updated offer is considered the best and final proposal from Challenger, unless a superior bid is presented. The initial offer from Challenger and its top shareholder, Pepper Group, had represented a 47.7% premium over the stock's last closing price at the time of the announcement.
