Sugar and spice in A$682m bid for Pepper Group

New York

KKR & Co LP has added a small sweetener to its bid for Australia's Pepper Group, caving to a demand from the non-bank lender's biggest shareholder and bringing the deal value to A$682 million (S$733 million).

With the new offer, which sent Pepper's shares surging, the US buyout firm gains a slice of Australia's A$1.7 trillion mortgage market while investors will be able to cash in at a 42 per cent premium to its IPO price two years earlier.