July 26, 2020 / 11:34 PM / 8 days ago

Australia's Perpetual to buy majority stake in U.S.fund manager for $319 million

(Reuters) - Australian fund manager Perpetual Ltd (PPT.AX) on Monday said it will buy a 75% stake in U.S.-based asset manager Barrow Hanley for $319 million, as it seeks to expand its global footprint.

Perpetual also said it expects to report underlying profit after tax of $93.5 million for fiscal 2020, compared with $115.9 million earned last year.

The Sydney-based firm said the acquisition will be funded through a debt facility of A$284 million ($201 million), available cash and an equity raising comprising of a fully underwritten A$225 million institutional placement and a non underwritten share purchase plan to raise up to A$40 million.

According to terms of the deal, Barrow Hanley will be able to continue operating independently with no changes expected to its existing management, Perpetual said in a statement.

Perpetual said it expects the acquisition to triple its funds under management to A$92.3 billion from A$28.4 billion.

The company is set to report its fiscal 2020 results on Aug. 20.

Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Richard Pullin

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