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Pepper Group Limited has confirmed that it has received an indicative non-binding proposal from KKR Credit Advisors (US) LLC (KCA) in relation to entering into an exclusivity agreement.
According to Pepper's group general counsel and company secretary John Williams, the group has received a non-binding proposal from the American investment management firm "on behalf of itself, certain of its affiliates and/or certain funds, clients or accounts managed or advised by KCA, or its affiliates" in relation to a potential control transaction.
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The transaction could see shareholders receive $3.60 per share and with permission for the directors to declare and pay a fully-franked dividend of up to $0.03 per share.
Pepper has said that it has granted exclusivity to KCA to enable it to undertake due diligence and potentially to negotiate definite transaction documents in respect to the proposal.
However, it emphasised that talks were ongoing and that an agreement was yet to be reached.
In the announcement, Mr Williams said: "The negotiations are incomplete and any entry by the parties into binding transaction documents remains subject to a number of conditions, including (without limitation) the completion of due diligence of KCA and agreement of terms by the parties.
"There is no certainty that an agreement will be reached or that the proposal will be implemented."
He added that Pepper has established an independent board committee to consider the proposal and any potential agreements with KCA.
Pepper has not released any further comment but has said it will "keep the market informed" in due course, in accordance with its continuous disclosure obligations.
