Stock of the day: Regal Partners
Regal Partners hits $17 billion in funds under management as it pursues Platinum Asset Management acquisition, earning a 'Buy' recommendation from market experts.
(AI video summary)
This video was created on 4 October for IG audiences by ausbiz.
ASX code: RPL
Suggestion: Buy
Regal Partners tops $17 billion in funds
Regal Partners (ASX:RPL), one of Australia's leading fund managers, has reached a significant milestone by surpassing $17 billion in funds under management. This achievement comes as the company advances its takeover talks with fellow wealth management giant Platinum Asset Management.
Takeover talks progress
The two groups have entered due diligence this week, with Platinum allowing Regal to examine its books. This move is aimed at potentially securing a higher bid from Regal. Last month, Platinum's board rejected Regal's initial offer of 0.274 Regal shares for every Platinum share, plus a $0.20 special dividend. Platinum has stated it remains open to offers from third parties.
Industry perspective
Market analysts view this potential merger as a clash between the old and the new in the fund management industry. Regal Partners, known for its aggressive growth strategy, is seeking to capitalise on economies of scale through this acquisition. For Platinum, which has experienced recent underperformance and outflows, the deal could provide a much-needed boost.
Benefits of the merger
The proposed merger could offer several advantages:
- Cost-cutting opportunities
- Enhanced infrastructure for Regal
- Potential to stem outflows for Platinum
- Increased market presence under a popular fund manager's banner.
Market position
Regal Partners and Janus Henderson are currently the only two fund managers attracting significant inflows in the Australian market. This positions Regal favourably in the industry, with its growth-by-acquisition strategy paying dividends.
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