Investing.com-- Shares of financial services firm Perpetual Ltd (ASX:PPT) rose on Monday after the company received a fresh proposal from global investment firm KKR & Co (NYSE:KKR) to acquire its wealth management and corporate trust divisions.
This development comes after an initial agreement faced challenges due to unforeseen tax liabilities.
Perpetual shares rose 1.4% to A$23.65 as of 02:12 GMT.
In December 2024, Perpetual announced a deal to sell these units to KKR for A$2.2 billion. However, the Australian Taxation Office later determined that the transaction would incur a tax bill between A$493 million and A$529 million, significantly higher than anticipated. This unexpected tax burden reduced the estimated cash proceeds for shareholders, leading to uncertainty about the deal's benefits.
Perpetual confirmed it has received a new non-binding, conditional proposal from KKR. The company stated that the latest proposal's specifics were inaccurately reported in the media and that the net proceeds for shareholders remain uncertain at this stage.
Perpetual board is currently assessing the revised proposal and associated terms, the company said in a statement.
Analysts suggest that if the sale proceeds, Perpetual would transform into a standalone fund management firm, potentially streamlining its operations and focus.