Citi and Morningstar are not convinced that Australian company Perpetual will sell its shares to KKR – 05/08/2024 at 11:27 p.m.

Citi and Morningstar are not convinced that Australian company Perpetual will sell its shares to KKR – 05/08/2024 at 11:27 p.m.
Citi and Morningstar are not convinced that Australian company Perpetual will sell its shares to KKR – 05/08/2024 at 11:27 p.m.

((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))

(Updates)

May 8 – **Citi cuts sale price of Australian fund manager Perpetual Ltd PPT.AX to A$23.25, from A$25.95, and maintains “neutral” rating on the stock

** Citi cites “uncertainty” over the amount of proceeds PPT would receive after selling its business and wealth management units to KKR KKR.N .

**Morningstar analysts maintain fair value estimate at A$26 per share

** Lack of details on the transaction, separation and capital gains tax makes it difficult to determine whether or not the transaction is accretive to our current intrinsic valuation – Morningstar

** The market is unaware of other expenses, making it difficult to know how much PPT shareholders will receive upon completion of the deal in February 2025, which also makes it difficult to evaluate the deal with certainty – Citi

** Maintains “neutral” rating for the stock

**5 of 8 analysts rate the stock as “buy”, 3 as “hold”; their median estimate is A$26.33 – LSEG data

**The stock is down 12.40% this year, as of last close

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