Australia's Pacific Current shares rise after rejecting a buyout proposal

Shares of Australian asset manager Pacific Current Group (ASX:PAC) advanced on Monday after the firm said it had rebuffed an early takeover bid from Roc Partners, arguing the price failed to capture fair value.

Pacific Current stated that it received the confidential, non-binding, and conditional approach from unlisted Roc Partners in May. The proposal outlined varying consideration for shareholders and would have been mostly financed from Pacific Current's own cash reserves.

By 04:28 GMT, the company's Sydney-listed shares were up 2.1% at A$11.29.

The company said it chose not to move forward after concluding that the cash component fell short of its own fair-value assessment.

It also rejected a proposed scrip rollover structure that would have produced divergent economic results for shareholders based on whether they could take part in Roc's scrip consideration.

Pacific Current indicated it would consider a revised offer that provided all shareholders with cash consideration at what it deemed a fair level. As of Monday, Roc had not yet presented a revised indicative proposal, according to the company.

The asset manager is also pressing on with a broader strategic review, which encompasses a proposal from River Capital that would see Pacific Current issue shares as payment for acquiring River Capital at A$13 per share.

Pacific Current anticipates delivering an update ahead of its annual general meeting scheduled for Nov. 12.