Pacific Current Rejects Roc Partners Buyout Offer, Shares Rise

Shares in Australian asset manager Pacific Current Group (ASX:PAC) rose on Monday after the company disclosed it had rejected a confidential buyout proposal from Roc Partners. The board stated the non-binding offer, received in May, did not reflect the company's fair value.

Details of the Proposal

Pacific Current's board decided not to proceed with the offer for two primary reasons. First, it determined the proposed cash component was below its own assessment of the company's intrinsic worth. Second, the board objected to a scrip rollover structure that would have resulted in different economic outcomes for shareholders based on their ability to accept Roc's scrip consideration.

The company also noted that the conditional proposal was structured to be largely funded from Pacific Current's own cash assets.

Market Reaction and Next Steps

Following the announcement, Sydney-listed shares of Pacific Current climbed 2.1% to A$11.29 as of 04:28 GMT. The market's positive reaction suggests investors support the board's decision to hold out for a better valuation.

Ad

Pacific Current said it remains open to a revised, all-cash proposal that it considers to be fair for all shareholders. According to the company's statement on Monday, Roc Partners has not yet submitted a revised indicative offer.

Ongoing Strategic Review

This development comes as Pacific Current continues a broader strategic review. The company is also evaluating a separate proposal from River Capital, which involves Pacific Current issuing its own shares as consideration for the acquisition of River Capital.

That proposal values Pacific Current's shares at A$13 each. The company expects to provide a comprehensive update on its strategic review by its annual general meeting, scheduled for Nov. 12.