Pepper announced last February that it was selling PES, which provides end-to-end loan and asset management services in the residential and commercial sectors, to Link Group, listed on the Australian Securities Exchange (ASX), which is some of the nation’s leading companies largest pension funds among their customers.
But today, the Pepper Group’s board of directors said the sale will not continue and has decided not to re-initiate the process that began in 2019 for the sale of PES.
This happens immediately after the Link Group has informed the ASX that the Link Board has not applied for an extension of the sales contract (SPA) after its expiry on January 31, 2020.
Pepper said the process was initiated in 2019 after a number of approaches by parties interested in Pepper’s European credit services business, which has continued to grow and develop very strongly.
Mike Culhane, CEO of Pepper Group, said, “2020 PES had its strongest year ever, with assets under management (AUM) growth now over € 40 billion and impressive EBITDA growth in all of our jurisdictions .
“Having significantly strengthened our service capabilities in recent years, we are ideally positioned to take advantage of significant growth opportunities in all of our major European markets, reinforced by the growing need for highly specialized credit service providers to address the negative effects of Covid-19-related challenges to minimize. ”Consumers and financial institutions across Europe.
With this in mind, and after reviewing the options, the Pepper Group’s Executive Board believes that it is in the best interests of the company, its employees, customers or shareholders to focus on the continued growth of the business in the near future. “
In the third and fourth quarters of 2020, PES took over twelve new portfolio mandates, with eight new customers increasing their assets under management by more than 5 billion euros. The company is in the process of acquiring these portfolios in the next three to four months.
Fraser Gemmell, CEO of Pepper European Servicing, said, “Having made significant investments in sophisticated, market-leading service platforms in Spain and Ireland and having the strongest financial performance in our history, we have a clear strategy to grow our business across the board.” our markets in the next few years.
“This includes both organic and acquisitive growth through targeted growth initiatives and the selective use of our balance sheet.
“We have a great local team and I look forward to working with them over the months and years to come to cement PES ‘position as Europe’s leading pan-European multi-asset servicer for both impaired and distressed assets. “
The planned transaction has been in proceedings with the Competition and Consumer Protection Commission (CCPC) in Ireland since January 2020 and a decision is expected in the coming weeks. With Link’s announcement today, this determination is no longer necessary.