Perpetual promotes executive to head up business transformation
Perpetual has confirmed an internal C-suite appointment to drive its business transformation, following the failed KKR deal last month.
The investment manager has internally promoted Song Hong to the role of chief transformation officer, having first joined Perpetual in November 2024 as a separation executive.
James MacNevin, Perpetual’s chief operating officer, told Money Management that Hong will play a “vital role” as the firm remains keen to sell off its wealth management division.
“Song has extensive experience leading transformation and efficiency programs across complex organisations and stakeholder groups and will play a vital role as Perpetual transforms into a more streamlined, focused business,” MacNevin said in a statement.
Prior to joining Perpetual, he spent over three years at NSW Treasury and held various senior roles at AMP Capital, MLC Asset Management and JP Morgan.
The appointment of a chief transformation officer follows the announcement on 24 February that Perpetual had withdrawn from its sale agreement with KKR to divest its wealth management and corporate trust business.
The company stated its board had withdrawn its recommendation in favour of the scheme, and the scheme implementation deed had been terminated following a formal report from the independent expert.
Last December, the Australian Taxation Office (ATO) ascertained Perpetual’s primary tax liability could be as much as $488 million if the deal proceeded. Further additional penalties and interest could also cause this sum to rise by as much as a further 50 per cent, it said.
“In the period since the announcement of the ATO’s feedback in December, Perpetual and KKR have engaged extensively, including on revised non-binding indicative proposals received from KKR,” Perpetual said in February.
“Despite constructive engagement, no alternative transaction has been agreed. After thorough review and the extensive period of engagement, the board has determined that the value and terms of those revised proposals, including the various conditions included, were not in the best interests of shareholders and discussions have now ended.”
However, Perpetual’s CEO Bernard Reilly said in its half-year results that it was still eager to pursue the divestment of its wealth management business.
Asked on a shareholder webinar about whether the firm had any potential buyers for the wealth division, Reilly said the news of the KKR deal collapse had prompted eager bidders to emerge.
“You can imagine with the announcement on Monday, there have been a number of inbound calls,” Reilly said.
“Part of the reason is that we have had extensive interest in the business over the past two to three years. We’ve not been able to engage with them during the course of the SID [scheme implementation deed] with KKR, but there is significant interest in the business. It’s a high-quality leading business in Australia, so we are confident in the interest.
“We aim to execute this as quickly as we can. We are not going to go for the fastest transaction. We are going to go for the best transaction, and that process will commence very quickly.”
AUTHOR
Jasmine Siljic
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