Sydney-based funds manager Platinum Asset Management has turned down a takeover proposal from hedge fund Regal Partners Ltd, stating that the bid undervalued the company., but remains open to considering other offers, according to a report by Bloomberg.
The unsolicited and non-binding bid from Regal would have valued Platinum at approximately AUD526m ($359m). In a statement on Thursday, Platinum’s board unanimously concluded that the proposed deal was “not in the best interest of Platinum shareholders,” at least “in its current form.”
Regal’s attempt to acquire Platinum is the latest in a series of strategic moves to expand its asset base through acquisitions, even as its funds under management have grown significantly due to strong performance. Meanwhile, Platinum has struggled with outflows and shrinking profits.
Following the announcement, Platinum’s shares dipped 0.9% in Sydney trading, adding to a more than 14% decline over the past year.
Founded by stock picker Philip King, Regal Partners has rapidly expanded, and now manages almost AUD17bn in assets—up from AUD4.7bn just two years ago. The firm, which started as a four-person long-short equities team in 2004, now operates across private markets and alternative investments, with offices in Sydney, Singapore, and New York.
Earlier this year, Regal acquired private credit firm Merricks Capital after previously purchasing hedge fund VGI Partners, while in 2022, the firm made a AUD1.7bn takeover bid for Perpetual Ltd, highlighting its ambition to become a leading investment manager in the region.
