During the past decade, there was also a fracturing in the relationship between Platinum’s co-founders Neilson and Andrew Clifford, concerning the group’s management and investment strategy.
Platinum appointed a new chief executive Jeff Peters, eight months ago, replacing Clifford.
Geoff Wilson declined to comment on whether his firm, Wilson Asset Management, was interested in forging a deal with Platinum. Credit: Dominic Lorimer
Peters delivered a mea culpa to investors and clients at Platinum’s annual roadshow last month, on the group’s investment performance. “I do know at times the relationship has been a difficult one. Our performance hasn’t been where we would want it to be,” he said, while thanking clients and shareholders for their patience and loyalty.
Platinum’s shares have been trading near $1.21 since the Regal bid. Analysts argue the strong rise implies that another bid is expected. But the rise in the stock has not been entirely driven by the takeover activity. Platinum’s shares have also benefited from recent gains in Platinum’s Asia fund, which strengthened after a powerful rally in Chinese stocks.
Chinese stocks have had some of their biggest gains in almost two decades after that country’s government recently unveiled a stimulus package to revitalise growth, amid curdling economic sentiment and deflation.
While Platinum’s board has rejected Regal’s offer, it is expected that the latter will return with an increased bid. Analysts said it would be an obvious manoeuvre from Regal, which hasn’t yet played its best hand, and especially if it wanted to keep the pressure on Platinum’s board, and Neilson, in the coming weeks.
Loading
Regal, co-founded by Phil King, has led consolidation in the funds management and alternative investment sectors, in recent years. It has done a handful of deals that have included acquiring Paul Moore’s PM Capital, private credit group Merricks Capital, and stakes in Taurus Funds Management and agricultural private investment manager, Argyle Group.
A deal with Platinum, would have been Regal’s biggest and most ambitious acquisition, and would have almost doubled its funds under management to $29 billion. An acquisition of Platinum would most likely have also put Regal into the ASX200 index.
At the end of August, Platinum had $12 billion in funds under management. Wilson Asset Management has about $5.5 billion in funds under management.
When Platinum’s board rejected Regal’s bid, it left the door open to more offers, stating it would consider “proposals for Platinum from Regal or other third parties, but will only progress any such proposals if they are on terms that deliver and recognise appropriate value for Platinum shareholders”.
Neilson has previously told this masthead that he wasn’t interested in an outcome for Platinum that was “just to smash companies together and take out costs”. Regal first flagged an interest in Platinum in 2022, when King declared the group was ripe for takeover because of its poor investment returns.
Regal’s offer, which includes a special dividend, has already shown that a deal with Platinum has to involve paying out the asset manager’s cash pile to shareholders to get it over the line.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
