Platinum rebuffs Regal, for now

Platinum Asset Management has rebuffed Regal Partner’s takeover bid but has left the door open for a more generous offer.

Platinum announced to the Australian Securities Exchange (ASX) today that its board had determined to reject the Regal proposal because the unsolicited, non-binding and indicative proposal undervalued Platinum.

However, the announcement said the Board remains open to considering control proposals from Regal or other third parties noting that it would only progress such proposals “if they are on terms that deliver and recognise appropriate value for Platinum shareholders”.

The Platinum Board announcement said that in deciding to reject the Regal bid it had assessed the stand-alone inherent value of Platinum in a change of control context, including with reference to its current turnaround strategy.

The Regal proposal offered Platinum shareholders 0.274 Regal shares and a fully franked special dividend of 20 cents per Platinum share.

In the wake of the Regal Partners offer a number of other suitors indicated their interest in Platinum.