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Perpetual Limited

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Perpetual Limited

Hi Guys, Just wanted to say that I love your in depth analysis of what is happening, in particular on the ASX. I hold PPT shares and am trying to get my head around what the state of play is here? According to the May ASX announcement KKR are to offer $ 2.175 B in cash for the part of the business not involved in investments. As there are 113M+shares, I calculate this to just over $ 19 per share. The market however as of Tuesday, is now valuing the whole company incl. investment business at less than $ 22 per share? Therefore implying a value of $ 3 per share for the remainder of the business. Yet PPT state that the remaining entity will be a stand alone ASX listed company with a debt free balance sheet. Any thoughts? Thanks

Answer

Thanks George,

I would recommend reading our recent coverage of PPT which did unfortunately end with us believing the stock was “too hard” ~$ 22.32. Considering the stocks drifted lower since the markets still agrees with us.  One obvious issue at the moment is exactly what you have flagged, i.e.  confusion. They have said they will provide more clarity around this in August.

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Perpetual Ltd (PPT)
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