Philip King’s Regal Partners Ltd has made a bid to acquire rival Platinum Asset Management Ltd as part of its aggressive expansion, which has seen the firm’s assets more than triple in the last two years, according to a report by Bloomberg.
Platinum, based in Sydney, announced on Tuesday that it received an unsolicited, non-binding offer from Regal to buy all its shares through a scheme of arrangement. Regal also confirmed the proposal in a stock exchange filing.
The offer entails Platinum shareholders receiving 0.274 Regal shares for each Platinum share held, translating to AUD0.9042 ($0.61) per share. This values the deal at approximately AUD526 million ($355 million) based on Monday’s closing prices, according to Bloomberg calculations. Additionally, Platinum would be permitted to distribute a fully franked special dividend of AUD0.24 per share to its shareholders from its cash reserves.
Platinum’s stock surged as much as 16.2% on the news and was trading at AUD1.0925 by mid-afternoon in Sydney, trimming its year-to-date losses to around 18%. Meanwhile, Regal shares dropped by nearly 1%.
Regal, which now manages close to AUS17bn in assets — up from AUD4.7 billion just two years ago — has expanded its footprint with offices in Sydney, Singapore, and New York. Initially starting as a four-person long-short equities fund in 2004, it has since evolved into a major player in private markets and alternatives.
The firm’s recent acquisition spree, includes private credit firm Merricks Capital and hedge fund VGI Partners. Last year, Regal also made a AUD1.7 billion takeover offer for Perpetual Ltd.
Platinum, which specialises in global equities, reported a 15% decline in average funds under management in its latest earnings report, with net income down 44% year-on-year. The firm also experienced AUD331 million in net outflows for August.
The firm has stated that there is no certainty that discussions will advance or that Regal will be granted access for due diligence.
