Equity firm in Pepper takeover bid

The announcement is the first step in negotiations between the two firms which could lead to a $650m transaction

Equity firm in Pepper takeover bid



Pepper Group has released confirmation of an ‘indicative non-binding proposal’ from private equity firm KKR Credit Advisors (KCA) bidding $650m for shares in the company.

The announcement is in relation to a potential control transaction which would offer shareholders $3.60 per share and directors a dividend of up to $0.03 per share.

“Pepper has granted exclusivity to KCA to enable it to undertake due diligence and potentially to negotiate definitive transaction documents in respect of the proposal,” John Williams, group general counsel and company secretary, wrote in an ASX announcement released today.

The negotiations between Pepper and KCA are incomplete thus far, with entry into a binding transaction reliant on a number of factors including the completion of due diligence and agreement by the two parties.

“There is no certainty that an agreement will be reached or that the proposal will be implemented,” Williams wrote.

Pepper has created an Independent Board Committee to consider KCA’s proposal as well as the terms of agreement between the two companies.

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