Australian investment firm Platinum Asset Management Ltd has entered into takeover discussions with Regal Partners Ltd, granting the hedge fund access to due diligence in the hopes of securing a potentially higher bid, according to a report by Bloomberg.
The report quotes Platinum as saying in a statement on Friday that the two firms have signed a confidentiality agreement to facilitate mutual due diligence.
The move comes after Platinum’s board unanimously rejected Regal’s initial offer of AUD526m ($360m) on 29 September, deeming it too low. While Platinum is now open to exploring a revised bid, it cautioned that there’s no assurance Regal will submit an improved proposal, nor that any other bids would be attractive enough to pursue.
The development marks the latest effort by Regal to expand its assets through acquisitions, even as its own funds under management have seen significant growth primarily driven by performance. Platinum, on the other hand, has struggled with declining profits and continued outflows.
Platinum’s stock has fallen by about 9% this year and remains down roughly 75% from its peak in March 2021, highlighting the firm’s challenges as it considers a potential path forward through this deal.
