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Bleak prospects for Perpetual’s $2.2b KKR deal after tax bill blowout

Jonathan Shapiro
Jonathan ShapiroSenior reporter
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Perpetual’s plan to sell its wealth management and corporate trusts business to buyout giant KKR for $2.2 billion is at risk of falling apart after it was handed a tax bill of almost five times its initial estimate.

The Australian Taxation Office said the proposed transaction would likely incur a bill of between $493 million and $529 million, well above the forecast of between $106 million and $227 million disclosed in August.

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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com

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    Original URL: https://www.afr.com/companies/financial-services/tax-ruling-a-potential-show-stopper-for-2-2b-perpetual-kkr-deal-20241210-p5kx6f