trending Market Intelligence /marketintelligence/en/news-insights/trending/n3VImo-VFMcnBWU7Mo4j4g2 content esgSubNav
In This List

Australia's Pepper Group agrees to takeover offer from KKR Credit


Insight Weekly: Bank oversight steps up; auto insurers’ dismal year; VC investment slumps


Banking Essentials Newsletter: 3rd May Edition


Banking Essentials Newsletter: 19th April Edition


According to Market Intelligence, April 2023

Australia's Pepper Group agrees to takeover offer from KKR Credit

Australia's Pepper Group Ltd. agreed to a takeover offer from U.S private equity firm KKR Credit Advisors (US) LLC.

Pepper said it entered into a scheme implementation deed with Red Hot Australia Bidco Pty. Ltd., an entity owned by certain funds, clients or accounts managed by KKR. Under the scheme, shareholders have the option to sell their shares for A$3.60 each or opt for a scrip option which enables them to retain interest in the business.

The price represents a premium of 25.6% to the one-month volume weighted average price of Pepper shares up to and including May 26 and values the group's fully diluted equity at A$675.9 million.

In addition, Pepper's board is entitled to pay a fully franked dividend of up to 3 cents per share to shareholders prior to the implementation of the scheme.

The group's chairman, CEO, CFO and each of their respective affiliates, who together hold a 35.5% stake in the company, have indicated their intention to vote in favor of the scheme. The board of directors have unanimously recommended that shareholders vote in favor of the scheme.

Subject to certain conditions, the scheme is expected to be implemented in November.

KKR Credit is a subsidiary of KKR & Co. LP

As of Aug. 9, US$1 was equivalent to A$1.27.