The investment manager has internally promoted Song Hong to the role of chief transformation officer, after he joined Perpetual in November 2024 as a separation executive.
James MacNevin, Perpetual’s chief operating officer, told InvestorDaily 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, Song spent over three years at NSW Treasury and held various senior roles at AMP Capital, MLC Asset Management and JPMorgan.
The appointment of a chief transformation officer follows the announcement on 24 February that the sale of its wealth management and corporate trust business to KKR had fallen through.
The company stated its board had withdrawn its recommendation in favour of the transaction and the scheme implementation deed was terminated following a formal report from an independent expert.
Late last year, Perpetual disclosed that the ATO’s “written views” on the transaction’s tax treatment led to a revised liability of $493 million to $529 million, up from the previously estimated $106 million to $227 million. As a result, the estimated cash proceeds to shareholders were significantly adjusted downward – from $8.38 to $9.82 per share to $5.74 to $6.42 per share.
“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 CEO Bernard Reilly said in its half-year results that the firm is 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 2–3 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.”
