Perpetual is due to give a trading update on its funds under management for the fourth quarter in the next few weeks, an opportunity for the Australian asset manager to give further clues on the outcome of its corporate trust sale.
Perpetual shares crashed by 9 per cent when it announced it had sold its corporate trust unit to Kohlberg Kravis Roberts in May for $2.18bn, because it was unable to specify its tax liability.
There’s hope for a surprise on the upside. Some shareholders consider a liability of $700m the worst-case scenario, and a bill of $200m or less would be well received.
The other area where investor expectations are high is for major cost cuts. This could mean job losses, following the acquisition of rival Pendal for $2.5bn in 2022.
After it was announced, the group forecast synergies of $80m per annum to be delivered within two years of deal completion.
Bell Potter analysts believe that Perpetual will have a tax liability of $100m to $400m, resulting in a cash payment of between $804m and $1.1bn or $6.95 to $9.55 per share to its shareholders. This would value the asset management business at between $1.3bn and $1.6bn.
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