Powered by MOMENTUM MEDIA
Broker Daily logo

Pepper receives updated proposal from KKR Credit

Non-bank lender Pepper Group Limited has received an "improved proposal" from investment manager KKR Credit, which would allow Pepper to pay a fully franked special dividend of up to 10 cents per share.

The specialist lender first announced in August 2017 that it has entered into an implementation deed with KKR Credit Advisors, with the investment manager paying $675 million to acquire the non-bank lender. The initial proposal from KKR was a cash payment of $3.60 per share as well as a 3 cent dividend.

Pepper Group’s directors then recommended that its shareholders vote in favour of the KKR takeover, which would see Pepper de-list from the ASX.

Given the new deal, which would value shares at $3.70 each, the board has once again called on shareholders to vote in favour of the scheme, in the absence of a superior proposal.

==
==

Payment of the special dividend would not reportedly reduce the cash offer under the scheme, and would not reduce the interim dividend of 3 cents per share (due to be paid on 5 October). 

KKR Credit has also stated that the improved proposal will be the investment manager’s final offer and will not be increased should there be no superior proposal present.

[Related: Pepper to consolidate rather than invest]

More on Economy
21 November 2024
After witnessing some positive trends in the offset of COVID-19, business failures across the country have picked up ...
21 November 2024
With GDP growth at just 0.2 per cent as of the June quarter of 2024, small and medium-sized enterprises (SMEs) are ...
20 November 2024
The RBA minutes for the November meeting revealed that members recognised the importance of flexibility in monetary ...