Kohlberg Kravis Roberts is now understood to be the preferred bidder in the $1bn-plus contest for Perpetual’s Corporate Trust and Wealth Management units, winning the right to negotiate with the Australian listed financial group exclusively.
It comes after DataRoom revealed last week that it was firming as the favourite in the contest.
The situation means EQT, which is advised by Barrenjoey and partnering with the Morgan Stanley-advised TA Associates, are no longer in the race.
Earlier, private equity firm Permira had fallen away.
KKR is advised by Jefferies Australia, and the talk around the market last week was that its bankers were in overdrive to get a deal across the line with the company expected to give an update on the progress of its strategic review around now.
Perpetual has been running a sale process to determine whether to part with the Corporate Trust and Wealth Management divisions and final bids landed before Easter.
DataRoom first revealed that KKR was a bidder of the Perpetual assets in December.
Perpetual’s management is led by Rob Adams.
An attractive offer may help the company to pay down its $734m debt pile.
Luminis Partners is working for Perpetual’s board, while Goldman Sachs and Bank of America work for the company.
The strategic review coincided with a scrip buyout proposal late last year from Soul Patts it claimed would value the group at $3bn or $27 a share.
Soul Patts said it would acquire all of Perpetual by way of a scheme of arrangement, then undertake a simultaneous demerger of Perpetual Asset Management distributed in-specie to existing Perpetual shareholders.
Soul Patts would then retain Wealth Management and the Corporate Trust arm in exchange for Soul Patts shares.
Perpetual had approaches for the corporate trust business in 2022 from Partners Group and BPEA EQT.
Corporate Trust, Australia’s largest provider of corporate trustee services and transaction support generated earnings before interest, tax, depreciation and amortisation of $46.5m for the six months to December.
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