Australia’s Pacific Current shares rise after rejecting a buyout proposal

Shares of Australian asset manager Pacific Current Group (PAC) soared on Monday following the rejection of a preliminary buyout offer from Roc Partners. The company had received the confidential, non-binding and conditional proposal in May, which differentially valued shareholders' interests and was largely funded by PAC's own cash reserves.

However, Pacific Current opted not to pursue the deal after determining that the cash element was insufficient to reflect fair market value. Additionally, the firm objected to the proposed scrip rollover structure, which would have resulted in varying economic outcomes based on shareholders' ability to benefit from Roc's scrip consideration.

PAC reaffirmed its willingness to entertain a revised offer that provides all shareholders fair cash consideration. The asset manager is currently conducting a strategic review, which includes a proposal from River Capital. Under this alternative proposal, PAC shares could be issued to fund the acquisition of River Capital at A$13 per share. The company anticipates releasing further updates prior to its annual general meeting on November 12.