Pepper Money has acknowledged receiving a confidential, non-binding, and conditional proposal from Challenger Limited to acquire 100 per cent of the company through a scheme of arrangement. The confirmation follows reports published in The Australian Financial Review’s Street Talk column detailing the potential acquisition. Pepper Money is a non-bank lender that specialises in home loans, car loans, and personal loans. Challenger is a financial services firm focused on providing financial security for Australians in retirement.
The proposed deal involves Challenger and Pepper Group jointly acquiring Pepper Money. Under the terms outlined in the non-binding proposal, Pepper Group would initially take an interest in the acquiring entity that is at least equal to its current holding. The offer stipulates a cash consideration of $2.60 per share for shareholders excluding Pepper Group. This amount is subject to deductions for the final 2025 dividend and any special dividends paid or declared.
Pepper Money has stated that discussions with Challenger are currently in progress. However, the company has cautioned that there is no guarantee a binding agreement will ultimately materialise from these discussions. Shareholders are advised to exercise caution when dealing in Pepper Money shares.
Pepper Money has engaged Jefferies Australia and Reunion Capital Partners as financial advisers to assist with evaluating the proposal. Gilbert + Tobin is serving as the legal adviser to Pepper Money throughout this process.
