Australian fund manager Pendal Group, parent company of JO Hambro, has accepted an A$2.5bn (£1.5bn) takeover offer from rival firm Perpetual.
The offer will give Pendal shareholders the equivalent of A$6.54 per share in the merger, with one Perpetual share for every 7.5 of Pendal, as well as A$1.976 cash for each Pendal share, reports sister site Investment Week.
This is an A$0.306 increase per Pendal share from the first bid made in April, which Pendal told its shareholders was inadequate.
Pendal said that all key brands and key investment teams will be retained, including JO Hambro and Regnan. Investment strategies and processes, along with client services and sales team will also remain unchanged.
The acquisition will create the second largest asset manager by size in Australia, with over A$201bn in assets under management, with the deal set to complete by later this year or early 2023.
Pendal shares surged 8.4% after the deal was announced, while Perpetual's stock fell to the lowest level since October 2020.
Pendal's board unanimously recommended that shareholders to vote for the offer.
"The scheme has the board's unanimous support and is strongly supported by our investment teams," said Pendal chair Deborah Page.
Tony D'Aloisio, chair of Perpetual and chair-designate of the combined group, said: "Our board and management see this as a defining acquisition that brings together two of Australia's oldest and most respected active asset management brands to create a diversified global asset management business of substantial scale.
"We believe the combination represents a strategically and financially compelling opportunity for both sets of shareholders, with our respective strategic ambitions realised significantly sooner than would otherwise occur."
