- Pendal Group (PDL) is preparing to raise $190 million to purchase U.S. investment management company Thompson, Siegel & Walmsley (TSW)
- The company has signed an agreement to purchase TSW for US$320 million (A$413 million)
- Under the placement, the company will issue around 27.9 million shares for $6.80 each, a 5.2-per-cent discount to Pendal’s last closing price
- Ahead of this raise, Pendal has entered a trading halt, company shares will be paused until Wednesday, May 12, or when it completes the placement
- On the market, Pendal last traded at $7.34 per share on May 7
Pendal Group (PDL) is preparing to raise $190 million to purchase U.S. investment management company Thompson, Siegel & Walmsley (TSW).
The global investment company has agreed to buy TSW for US$320 million (around A$413 million).
PDL is expecting the acquisition trigger a double-digit earnings per share increase in the first full year post completion.
After the purchase, Pendal’s consolidated funds under management (FUM) will increase by 30 per cent to $132 billion, with its U.S. client FUM increasing by 112 per cent to US$44.7 billion (nearly A$58 billion).
“TSW is a natural strategic and cultural fit with Pendal and expands our successful diversified business model in the largest equity market in the world,” CEO Nick Good said.
“TSW is highly complementary to Pendal’s U.S. business, with almost no overlap of investment strategies and clients. This will deliver the opportunity to generate new FUM through the expansion of our addressable market in the US and our ability to distribute both TSW and JOHCM products through an expanded global distribution network,” he added.
To pay for some of this purchase, Pendal is aiming to raise $190 million through a placement.
Under the placement, the company will issue around 27.9 million shares for $6.80 each, a 5.2-per-cent discount to Pendal’s last closing price.
Ahead of this raise, Pendal has entered a trading halt. This means company shares will be paused until Wednesday, May 12, or when it completes the placement.
On the market, Pendal last traded at $7.34 per share on May 7.