Tax ‘uncertainty’ behind Perpetual’s drastic fall in shares
Shaw and Partners Senior Investment Advisor Adam Dawes has revealed a lack of information around tax, as well as other uncertainties, is the reason for Perpetual’s drastic fall in shares.
It comes as the financial services company is to be broken up in a $2.18 billion deal, with global private equity giant KKR acquiring Perpetual’s corporate trust and wealth management businesses, as well as the famous brand name.
Tax ‘uncertainty’ behind Perpetual’s drastic fall in shares
If approved by shareholders and regulators, the asset management arm of the company will remain a standalone business, which will be rebranded.
“Out of the 216 pages that we had 20 minutes to read before the stock came out of trading halt, there was no real information on tax,” Mr Dawes told Sky News Australia.
“That for us means there is some uncertainty.
“Now we know Perpetual would have come out and would have done their due diligence with the tax, and those kinds of things, so they would know what’s going on.
“They haven’t told the market, and that’s where the issue is.”
Perpetual Chief Executive Rob Adams will retire following the completion of the transaction, which is expected to be in February 2025.