Sixteen months after swallowing rival fund manager Pendal in a cash and shares deal worth around $2 billion, Perpetual (ASX:PPT) is, in turn, being taken over and split up in a deal worth $1.5 billion.
Under the deal, which will be announced on Wednesday morning, Perpetual will be broken up, giving KKR the Perpetual name along with its valuable corporate trust and wealth management businesses, in a deal worth more than $1.5 billion.
The Financial Review reported that Perpetual will remain as a pure funds management business, presumably in need of a new name (which will be expensive).
It will reportedly use the money from the sale to reduce debt, taxes, and make a return to shareholders.
In late April, Perpetual confirmed it was in exclusive talks with KKR over a sale of its corporate trust and wealth management business.
The deal would help KKR expand its investment management footprint in Australia.
Perpetual shares rose 1% on Tuesday to $24.02, with a value of $2.69 billion.
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