Regal Partners Limited (ASX:RPL) has entered into an agreement to acquire PM Capital Limited from Paul Moore and PM Capital's employees for AUD 150 million on November 3, 2023. The upfront consideration for the acquisition is AUD 20 million in cash, subject to net debt and working capital adjustments, with deferred, and largely conditional, consideration consisting of the issuance of approximately AUD130 million of converting redeemable preference shares at an issue price of AUD 1.889 per security. In related transaction, Regal Partners has agreed to acquire 50% of the issued ordinary shares of Taurus SM Holdings Pty Limited.

The cash component of the consideration for the acquisition is intended to be funded by a combination of existing cash sources and investments on Regal Partners? balance sheet. PM Capital Limited reported Net Income of AUD 13.4 million in year ending June 2023.

Completion of the acquisition is otherwise subject to finalization of an internal restructure regarding PM Capital and its related entities, The issuance of the Converting Shares is subject to receipt of approval from Regal Partners Limited's shareholders. The transaction is expected to complete in late December 2023. The transaction is expected to to be accretive to its earnings per share.