Perpetual names leadership for proposed $2.7bn Pendal takeover

Perpetual key staffers announced to lead the combined entity if its $2.7bn takeover of Pendal proceeds. Only one Pendal executive scored a key role.

Perpetual has named the executive committee team that will lead the combined company if its $2.7bn takeover of Pendal is successful, with its chief executive Rob Adams to lead the funds management giant and all but one of the key positions taken by Perpetual employees.

The combined firm’s asset management unit in Australia will be run by Amanda Gillespie, asset management for the Americas will be run by David Lane, while Pendal executive Alexandra Altinger, who currently runs J O Hambro Capital Managed, will lead the UK, European and Asian asset management unit.

Perpetual named Adam Quaife as chief distribution officer, Paul Chasemore was named chief people officer, Mark Smith will run Perpetual Private, Richard McCarthy will run Perpetual Corporate Trust, Sam Mosse was named chief risk and sustainability officer, Chris Green was named chief financial officer, and Amanda Gazal was named chief operating officer.

“Importantly, a number of senior Pendal executives will also remain in an advisory capacity for varying periods of time to assist with the early stages of integration,” said Mr Adams in the statement.

The loss of Pendal staffers – particularly if from the investment team – may worry Perpetual investors already concerned about the value of merging the two fund managers together, given the high outflows of funds under management that sometimes follow such deals.

Perpetual itself has just lost its long term head of Australian equities, Paul Skamvougeras, who is believed to be against the takeover.

Pendal shareholders will vote on the takeover via a scheme of arrangement on December 23 and if it succeeds the appointments will become live on deal completion in January.

Perpetual had unsuccessfully attempted to stall its bid for Pendal after itself being subject to a takeover offer from smaller rival Regal Partners with the backing of private equity giant EQT’s Hong Kong Baring unit.

Value fund managers have been consolidating in recent years to try to find scale as more investment dollars move into lower fee paying exchange traded funds.

Perpetual shares were up 0.6 per cent to $24.84 on the ASX on Wednesday afternoon, with Pendal down 0.2 per cent to $4.95.

Perpetual shares have fallen 33 per cent this year and are now trading below the two now-rejected non-binding takeover approaches of $30 and $33 per share by the Regal – EQT consortium.