Washington H Soul Pattinson Makes $2 Billion Bid for Perpetual in Wealth Management Sector Consolidation

Washington H Soul Pattinson: In a notable move within Australia’s wealth management sector, diversified investor Washington H Soul Pattinson (WHSP) (SOL.AX) has launched a A$3.1 billion ($2 billion) bid for domestic fund manager Perpetual (PPT.AX). This strategic maneuver comes on the heels of Perpetual’s announcement of a potential split between its corporate trust and wealth management businesses from its core asset management division.

As the largest shareholder in Perpetual with a 9.9% stake, WHSP’s indicative non-binding scrip bid values Perpetual at A$27 a share, representing a substantial 28.6% premium to its share price on November 13. The proposed bid outlines the spin-off and distribution of Perpetual’s asset management business to existing shareholders, with WHSP retaining ownership of Perpetual’s wealth management and corporate trust operations. Additionally, WHSP would absorb approximately A$700 million of Perpetual debt.


Washington H Soul Pattinson

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The A$3.1 billion offer is structured with A$1.06 billion worth of WHSP scrip and A$2 billion worth of Perpetual Asset Management scrip. WHSP justified its bid by pointing to the perceived complexity of Perpetual‘s group structure, coupled with the prevailing market conditions and Perpetual’s high financial leverage, which, in WHSP’s view, is impacting the share price and limiting strategic flexibility.

Morningstar equity analyst Shaun Ler opined that the WHSP bid offers fair value for Perpetual, especially in a challenging macroeconomic climate for fund managers. The deal provides an avenue for investors to exit without undertaking the execution risk associated with Perpetual’s own plan to separate assets. As the Australian wealth management landscape witnesses further consolidation, WHSP’s bid for Perpetual introduces an element of strategic reconfiguration in response to evolving market dynamics and investor sentiments.

Our Reader’s Queries

Who are the major shareholders of Washington Soul Pattinson?

The top shareholders of Brickworks Limited are listed below, along with their equities percentage and corresponding number of shares. At the top of the list is Brickworks Limited itself, with a 26.13% stake in the company, equivalent to 94,314,855 shares. The Millner Family follows with a 6.229% stake, or 22,485,768 shares. The Vanguard Group, Inc. holds a 2.548% stake, or 9,196,980 shares, while Hugh Dixson has a 2.424% stake, or 8,749,192 shares. The remaining shareholders are not listed here.

What is the history of Washington Soul Pattinson?

Back in 1886, a pharmacy was established in Balmain by Lewy Pattinson. Fast forward to April 1902, Pattinson acquired Soul and merged it with his business, forming Washington H Soul Pattinson & Company Limited. The company made its debut on the Sydney Stock Exchange on 21 January 1903.

What does Soul Pattinson own?

Washington H. Soul Pattinson & Co., commonly known as “Soul Patts”, is a prominent holding company in Australia. It holds significant stakes in various companies, including TPG Group (ASX: TPG) and Brickworks (ASX: BKW). In addition to its public holdings, Soul Patts also has an extensive portfolio of private companies and a debt investments business.

How many Soul Pattinson stores are there in Australia?

The API network boasts a widespread presence across all Australian states, with over 470 Priceline Pharmacy stores, 975 independent Soul Pattinson Chemist, Pharmacist Advice and Club Premium pharmacy members, and more than 80 Clear Skincare clinics in Australia and New Zealand. Additionally, they offer a diverse range of health and personal care products to cater to all your needs.

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