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.