The Australian owner of UK business Pepper Homeloans confirmed in early July that it had received an approach from private equity firm KKR about a potential transaction.

The approach values the business at $650m AUD (£392m) or $3.60 AUD a share.

A spokesman said: “Pepper Group remains in exclusive discussions with KKR Credit Advisors in relation to a potential control transaction and will update the market as required under its continuous disclosure obligations.

There is no certainty that an agreement will be reached or that the proposal will be implemented.”

Two years ago, KKR purchased GE Consumer Finance in Australia and New Zealand with Varde Partners and Deutsche Bank. Now renamed Latitude Financial Services it offers loans, credit cards and insurance.

Sponsored

Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let

Sponsored by Aldermore

Pepper’s global lending and servicing businesses are operating as usual.