(Bloomberg) -- Funds manager Platinum Asset Management Ltd. rejected a takeover offer from hedge fund Regal Partners Ltd., saying the offer undervalued the company and it was open to other bids.
Sydney-based Platinum rejected the unsolicited and non-binding offer from rival Regal that would have valued the firm at about A$526 million ($359 million). The company’s board unanimously decided the proposed deal was “not in the best interest of Platinum shareholders,” at least “in its current form,” Platinum said in a statement Thursday.
Earlier: Hedge Fund Regal Makes Offer for Sydney-Based Rival
The pursuit is the latest in a series of plays by Regal to accumulate greater assets via deal making even as its funds under management have surged largely from performance. At the same time, Platinum has battled with outflows and cratering profits.
Shares in Platinum fell 0.9% in Sydney following the statement, adding to a more than 14% decline over the last 12 months.
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Regal, founded by stock picker Philip King, manages almost A$17 billion in funds — up from A$4.7 billion two years ago — with offices in Sydney, Singapore and New York. From a mainly long-short equities fund that started as a four-person team in 2004, it’s expanded into an investment manager across private markets and alternatives.
The fund purchased private credit firm Merricks Capital this year after acquiring hedge fund VGI Partners and making a A$1.7 billion takeover offer for Perpetual Ltd. in 2022.
(Updates with share price in fourth paragraph)
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