What is driving the Pepper Money share price today?

PPM.AX jumped about 27% after Pepper Money confirmed a confidential, non-binding A$2.60-per-share scheme proposal from Challenger. The move reflects a potential change of control and cash consideration. Shares still trade below A$2.60, showing investors are pricing execution, funding, and approval risks while awaiting diligence outcomes and any binding agreement.

What does the A$2.60 offer imply for valuation?

Using TTM figures, EPS of A$0.22 implies a ~11.8x P/E at A$2.60. With book value per share near A$1.68, P/B is ~1.55. TTM dividends of A$0.26 suggest a ~10% yield equivalence at the proposal price. These metrics look reasonable for a non-bank lender with higher leverage and cyclical earnings.

Why did Challenger shares fall on the news?

As the buyer, CGF.AX typically absorbs deal costs and integration risk, which can pressure the stock. The market also weighs funding mix, capital impacts, and strategic fit. On recent numbers, CGF traded near a 30.7x TTM P/E, so any uncertainty around returns on the transaction can drive short-term downside volatility.

What are the main risks to the Pepper Money takeover?

Key risks include diligence findings, funding terms, and obtaining board, court, and shareholder approvals. Market conditions for credit and securitisation also matter. If confidence weakens, the spread can widen or the proposal may lapse. If confidence improves, pricing can move closer to the A$2.60 headline over time.

Global Market Insights

PPM.AX Stock Today, February 10: +27% on A$2.60 Challenger Takeover Bid

ByDanny Kontos February 10, 2026February 10, 2026

The Pepper Money takeover dominated ASX headlines today after Challenger lobbed a confidential, non-binding A$2.60-per-share scheme proposal. PPM.AX surged about 27% on the news, while CGF.AX slipped over 3% as investors weighed deal costs and execution risk. We break down the Challenger acquisition offer, what it could mean for the PPM.AX share price, and how the ASX takeover premium stacks up. We also outline likely timelines, key risks, and the next catalysts Australian investors should watch.