Addressing shareholders at the company’s annual general meeting, Tony D’Aloisio highlighted the weight of this decision for both shareholders and employees, while hinting at possible delays in the planned schedule of the transaction.
“We understand the importance of the Perpetual brand to our Australian operations and the significance of this decision for some of our shareholders and employees to sell the brand,” D’Aloisio said.
He also highlighted the significant status of the brand within the Australian asset management industry, explaining the importance of trading an appropriate period for continued use by the Australian equities industry.
Although the brand is moving into private hands as part of the separation from Perpetual, it will still be used by the Corporate Trust and Wealth Management divisions.
“The price included the negotiated value for the brand,” D’Aloisio said, emphasizing that the Australian equities business would retain the Perpetual name for a “sufficient period of time” after the transaction was implemented.
D’Aloisio also reassured shareholders that the global asset management arm operates under several well-established brands, including JO Hambro, Trillium, Pendal, Barrow Hanley, TSW and Regnan. Since the Perpetual name is not central to these activities, he explained, the risk associated with the brand transition is minimized.
Looking ahead, D’Aloisio confirmed that the company still aims to put the KKR deal to a shareholder vote in early 2025.
He warned, however, that regulatory approvals and discussions on taxes and customs duties could cause delays.
“As soon as we have a clearer vision and certainty about this, we will be able to update the market,” he said.
In the meantime, D’Aloisio said Perpetual will continue to run its three core businesses with the same focus and intensity as before, ensuring continued momentum during the transition.
Last month, reports emerged that Perpetual’s deal with KKR was facing increased scrutiny as its stock price continued to fall, raising concerns that the offer be canceled.
During the company’s earnings call for the 2023-2024 financial year, questions were asked about whether the transaction would produce the expected returns, putting pressure on Perpetual’s strategic direction post-merger.
At the time, then-CEO Rob Adams said that even if the deal fell through – which he said was unlikely – Perpetual still believed it was better to operate its retail business separately. asset management, corporate trust and wealth management.
“We are completely focused on getting the transaction done,” Adams said, but added: “Our board manages the contingency plans. It’s not the outcome we expect, but we manage them.
Also at last week’s AGM, Perpetual received a first strike against its remuneration report following significant shareholder opposition, despite the board’s justification for retention pay and short-term incentives to ensure leadership stability during a period of strategic review.
Around 88 percent of shareholders opposed the adoption of the remuneration report and the proposal to elect Rodney Forrest to the board of directors was also rejected.
