What exactly is Pepper Money being offered?

The proposal is A$2.60 per share via a scheme of arrangement, with the cash consideration reduced by any FY2025 final or special dividends declared before completion. It is confidential, non-binding and conditional, meaning it requires due diligence, definitive agreements, shareholder approval, and court approval before it can proceed.

Why does Pepper Money trade below A$2.60 if there is an offer?

The gap reflects execution risk, time to completion, and the dividend adjustment clause. Investors also price the chance the proposal does not progress to a binding scheme. As a result, shares often trade at a discount to the headline price until conditions are satisfied and timelines firm up.

What are the key milestones to watch next?

Watch for due diligence outcomes, a scheme implementation deed, and the independent expert’s report. Shareholder and court approvals follow. Earnings dates also matter: Pepper Money on 26 February 2026 (UTC) and Challenger on 17 February 2026 (UTC), which can influence funding, valuation, and deal confidence.

What does the proposal mean for Challenger shareholders?

Challenger shares fell on the news, likely reflecting funding and integration risk as well as near-term earnings considerations. Investors will look for clarity on financing structure, return thresholds, and synergy potential in upcoming results and deal updates. Confirmation of binding terms would be key for sentiment and valuation.

Global Market Insights

PPM.AX Stock Today: February 10 — Soars 27% on A$2.60 Takeover Offer

ByDanny Kontos February 9, 2026February 9, 2026

Pepper Money surged today after confirming a confidential, non-binding proposal from Challenger and Pepper Group ANZ at A$2.60 per share via a scheme of arrangement, adjusted for any FY2025 final or special dividends. Shares of PPM.AX rallied more than 27% intraday, while CGF.AX slipped. The bid could take Pepper Money private and set a valuation floor near the offer. We break down the terms, the spread to the offer, valuation markers, and the milestones investors in Australia should watch next.