Platinum Asset Management strategic update

Platinum Asset Management (ASX:PTM) has terminated discussions with Regal Partners Limited regarding a potential acquisition. This decision follows a period of mutual due diligence. In conjunction with this announcement, Platinum has declared a fully franked special dividend of 20 cents per share. The company aims to focus on its turnaround strategy, emphasizing cost control and investment process reviews.

Strategic focus and future outlook

Platinum Asset Management has decided to terminate acquisition discussions with Regal Partners, allowing the company to refocus on its strategic overhaul. The announcement of a special dividend aligns with Platinum's capital management goals while ensuring sufficient capital for growth. The company is executing a turnaround strategy, focusing on cost control, product rationalization, and investment process improvements. A key component of this strategy includes a partnership with GW&K to distribute their global small cap strategy in Australia. This partnership represents a significant step in expanding investment offerings, demonstrating Platinum's commitment to providing access to global equities and delivering strong investment returns. The company remains focused on stabilizing its operations and preparing for future growth.

Executive commentary on recent developments

Platinum has decided to cease discussions with Regal Partners Limited after careful consideration. This allows us to eliminate the uncertainty surrounding the initial proposal, which was not accepted. Our focus now shifts to our turnaround strategy, which includes stringent cost control, redesigning remuneration structures, product rationalization, and an in-depth review of our investment processes. Additionally, the declaration of a special dividend is aligned with our capital management policy, ensuring adequate working capital for future growth. We are also excited about our new partnership with GW&K, which will enable us to bring their global small cap strategy to the Australian market.