Perpetual in Exclusive Talks with KKR on Possible Deal

(Bloomberg) -- Perpetual Ltd. confirmed it’s in exclusive talks with KKR & Co. in relation to the potential acquisition of its corporate trust and wealth management businesses, leaving the US private equity giant in pole position for a deal.

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There is no certainty of reaching a binding agreement, or that any transaction would proceed, according to a statement from the Sydney-based firm on Monday. Exclusivity will end on May 7 and Perpetual will give more details by the following day, the statement said.

The development leaves KKR primed to acquire parts of the Australian money manager, a business which oversees about A$214 billion ($140 billion), some five months after announcing a review to unlock value for shareholders. It follows earlier interest in the company and its parts from EQT AB, among others, according to reports. Perpetual rejected a A$3.5 billion takeover offer from Australian investment house Washington H Soul Pattinson & Co. in December.

Perpetual in December began a review of its corporate trust and wealth management units to explore the benefits of unlocking value for shareholders, in order to create a more focused asset management business.

(Adds details on the deal history from third paragraph)

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