Pacific Current Shares Rise After Rejecting Roc Partners Bid

Pacific Current Group shares rose following the multi-boutique asset manager's formal rejection of a buyout proposal from Roc Partners, as the board maintains an ongoing strategic review that includes an alternative offer from River Capital. The ASX-listed firm confirmed it declined the confidential bid while updating investors on competing acquisition pathways ahead of its annual general meeting.

Following the strategic review update and the rejection of the Roc Partners proposal, Pacific Current Group (ASX:PAC) stock traded up at $11.28 on the Australian Securities Exchange, according to a report by Grafa.

Why the Roc Partners Proposal Was Declined

The Pacific Current board evaluated the confidential, non-binding, conditional, and indicative proposal from unlisted firm Roc Partners and determined it did not align with shareholder value. Specifically, directors concluded that the cash consideration fell below the company's internal fair value assessment.

Beyond valuation concerns, the board found that the Roc Partners bid relied heavily on Pacific Current's own underlying assets to finance the transaction. Furthermore, the proposed scrip rollover structure would have created differential economic outcomes for various groups of shareholders instead of treating all investors equally.

Assessing the Rival River Capital Offer

While stepping away from the Roc Partners approach, Pacific Current continues to advance its broader strategic review. As part of this process, the board is evaluating an alternative proposal put forward by River Capital.

The competing River Capital bid involves a potential issue of Pacific Current shares valued at $13.00 per share, offering a distinct financial structure compared to the rejected Roc Partners terms. The board has not yet concluded its assessment of the River Capital transaction, leaving the ultimate direction of the asset manager open as discussions continue.