Pepper Group has confirmed a takeover bid from KKR

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Non-bank lender Pepper Group confirmed it has received a takeover bid from private equity giant KKR.

The US-based investment house has offered $3.60 a share, valuing Pepper at $655 million.

The deal could include up to $0.03 in full franked dividends.

Pepper has granted KKR exclusive due diligence.

At the end of December, Pepper had $52.4 billion in funds under management. The group posted a net profit of $61.6 million in 2016.

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