It's been another strong start to the trading session for the All Ordinaries Index (ASX: XAO) so far this Thursday. At the time of writing, the All Ords has gained an impressive 0.65%. But let's talk about one All Ords share that is making that gain look insignificant.
The Pacific Current Group Ltd (ASX: PAC) share price is on fire today. Pacific Current shares closed at $7.80 each yesterday. But today, the company opened at $10.30 a share before climbing more than 36.5% to $10.65 – a new 52-week high for Pacific Current.
That's also the highest this All Ords share has traded at since 2015:
Right now, the shares have cooled off slightly, but are still up 32.56% at $10.34 a share.
Pacific Current is an ASX financials share that provides various services, including distribution and financing, to funds management companies and private equity firms.
So what's going on today that could have prompted such a dramatic revaluation of this All Ords share by the markets?
Well, we don't have to look too far.
All Ords bidding war erupts for Pacific Current shares
This morning, Pacific Current confirmed that it has received an indicative takeover proposal. This proposal comes from GQG Partners Inc (ASX: GQG). GQG is a US-based asset manager that provides investment advisory and portfolio management services to pension funds, other fund managers, sovereign wealth funds and individual investors.
But that's not all. Yesterday, Pacific Current also informed investors that it has received a prior takeover proposal from another ASX All Ords share and investment management services company, Regal Partners Ltd (ASX: RPL). So this company is truly hot property right now, it seems.
We don't yet know what kind of offer GQG has put on the table for Pacific Current. But we do know that Regal's proposal valued Pacific Current at $10.77 a share, or $555 million all up.
Here's some of what GQG's CEO Tim Carver had to say on his company's offer:
We believe that we can put forward a compelling proposal to PAC shareholders, and that we will be viewe as strategically compelling to both PAC's underlying portfolio companies and management team. We have a long history with PAC, both as executives and by virtue of our corporate relationship.
We have evaluated the PAC portfolio and have a strategic vision for unlocking value for PAC's shareholders and portfolio companies. We are confident in our transaction approach and will look forward to participating in the PAC transaction process.
Not to be outdone, here's some of what Regal CEO Brendan O'Connor told investors:
This proposal represents a transformational growth opportunity for both Regal and Pacific Current and one that we believe would create meaningful long-term value for both shareholders and clients.
A transaction would combine the scale, operational expertise and fundraising networks of Regal with Pacific Current's highly attractive and globally diverse portfolio of 'GP stakes' in leading alternative asset managers.
It represents another exciting step in our pursuit to be the leading provider of alternative investment strategies in Australia and Asia, and would capitalise on the continued growth in demand for high-performing, uncorrelated alternative investment strategies.
We believe this is a highly compelling proposal and look forward to engaging with the Board of Pacific Current to the benefit of both companies' shareholders, boutiques, clients and staff.
So All Ords investors seem to be gearing up for a potential takeover war here. This could result in an even higher takeover price being put on the table from either prospective buyer. If that were to happen, we could see the Pacific Current share price climb even higher from here. But let's wait and see what happens.
