Tiger Brokers

BUZZ-Australia's Perpetual tumbles on unfavorable tax ruling over KKR deal

Reuters
Dec 10, 2024
BUZZ-Australia's Perpetual tumbles on unfavorable tax ruling over KKR deal

** Shares of fund manager Perpetual PPT.AX fall as much as 9.7% to A$19.785, their biggest intraday drop since late-July 2023

** Stock hits its lowest since Oct 17, and is among the top three losers in the ASX 200 benchmark index .AXJO

** Co says Australian Taxation Office's $(ATO)$ review of its deal to sell wealth management and corporate trust businesses to KKR revealed higher liabilities, lower shareholder returns

** Co now sees taxes relating to deal between A$493 mln($317.20 mln) and A$529 mln vs initial assessment of A$106 mln-A$227 mln

** Adds estimated cash proceeds from deal would now reduce to A$5.74-A$6.42 apiece vs A$8.38-A$9.82 earlier

** Says it is engaging with KKR to consider the potential impact of ATO's review on the deal

** As of last close, stock down 14% YTD

(Reporting by Himanshi Akhand in Bengaluru)

((Himanshi.Akhand@thomsonreuters.com;))

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