• Challenger submits revised non-binding offer to acquire Pepper Money at $2.25 per share
• Original proposal of $2.60 per share withdrawn due to deteriorating market conditions
• Revised offer inclusive of CY2025 final dividend and any special dividend

Pepper Money Limited has received an updated non-binding indicative offer from Challenger Limited to acquire 100% of the shares in Pepper Money under a scheme of arrangement. On 9 February 2026, Pepper Money confirmed that it had received a confidential, non-binding and conditional proposal from Challenger to acquire Pepper Money at a price of A$2.60 per share. Challenger has now advised that due to the deterioration in both market conditions and the operating environment, it is not prepared to proceed with the original proposal and has submitted a reduced offer at a price of A$2.25 per share. The revised proposal is inclusive of the CY2025 Final dividend of 7.8 cents (fully franked) per Pepper Money Share and any special dividend. Challenger has expressed the revised proposal to be its best and final offer, in the absence of a superior proposal. Pepper Money's Independent Board Committee will consider the revised proposal, and shareholders are not required to take any action at this time.