ASX-listed specialist alternatives investment manager Regal Partners is currently in talks with fund manager PM Capital regarding a potential acquisition.
Regal confirmed that its discussions with PM Capital have progressed “significantly” in an ASX statement on Monday issued in response to recent media speculation.
“These discussions are significantly progressed; however they remain incomplete and no agreement has been reached as at the date and time of this announcement,” Regal said.
“There is no guarantee that, following any such discussions, a transaction will be agreed.”
The firm has appointed Allens as its legal advisers and indicated that it will continue to update shareholders as required under continuous disclosure obligations.
In a separate statement on Monday, PM Capital clarified that the discussions relate “purely to PM Capital” and not to the ASX-listed PM Capital Global Opportunities Fund (PGF).
“PM Capital has confirmed that this does not impact the provision of PM Capital’s investment management services to PGF,” the firm said.
“PGF has no comment to make in relation to these third-party matters at this time. PGF will keep the market informed as may be required in the future.”
The talks between Regal and PM Capital come after Regal abandoned its plan to acquire Pacific Current Group last month, two months after the bid was first publicly unveiled.
At the time, Regal said it had been “consistently disappointed with the engagement by the Pacific Current board” since submitting an initial non-binding indicative proposal (NBIO) in March.
“Based on the manner in which Regal’s re-affirmed NBIO has been received, Regal has little confidence in the process being run,” it said.
“For these reasons alone, Regal has formally withdrawn its NBIO to acquire Pacific Current.”
Meanwhile, the firm indicated that it still believed that an acquisition could provide strategic benefits to both Regal and the underlying Pacific Current affiliates.
“Regal’s growth-focused strategy remains unchanged with multiple organic and inorganic opportunities to execute on its ambition to be a leading provider of alternative investment strategies,” Regal said last month.
“Regal will continue to assess these opportunities prudently as and when they arise.”
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
