Shares in All Ordinaries Index (ASX: XAO) stock Pacific Current Group Ltd (ASX: PAC) have jumped more than 8% today on takeover news related to GQG Partners Inc (ASX: GQG).
Pacific Current owns stakes in fund managers from around the world and helps them grow through capital and expertise. GQG is one of its biggest investments, but now GQG is getting closer to acquiring the ASX All Ords stock.
GQG — a global fund manager headquartered in the United States — manages active equity portfolios. At 30 September 2023, it had US$105.8 billion of funds under management (FUM), with clients including large pension funds, sovereign funds, wealth management outfits and other financial institutions around the world.
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Pacific Current shares in the spotlight
GQG advised the market today that it started participating in Pacific Current's strategic transaction process on 8 September 2023, submitting a non-binding indicative proposal to the company's independent board committee.
Meanwhile, rival fund manager Regal Partners Ltd (ASX: RPL) withdrew its takeover offer to buy Pacific Current a few weeks ago.
GQG confirmed that its proposal provided for a Pacific share price of A$11 cash offer per share through a scheme of arrangement — after the completion of due diligence.
GQG saw "significant strategic merit in a combination with PAC", adding it believed its bid for the ASX All Ords stock was an attractive outcome for Pacific Current shareholders.
Is the takeover a done deal?
Pacific Current updated the market yesterday, saying said the GQG offer represented "attractive value" for shareholders considering there was an implied premium of 56% to Pacific Current's undisturbed three-month average share price of $7.05.
Pacific Current also revealed that GQG has engaged with Pacific Current's largest shareholder, River Capital, about securing its support for the deal in the absence of a superior proposal for the ASX All Ords stock. However, GQG hasn't yet been able to secure River Capital's support.
Share price snapshots
Since the start of 2023, the Pacific Current share price has risen by 33%, while the GQG share price has fallen by around 3%. Pacific shares closed 8.6% higher today at $9.95. GQG shares were up 1.9% at the close, trading at $1.34.
