• Pepper Money received a revised non-binding, indicative proposal from Challenger at A$2.25 per share
• Independent Board Committee determined the revised proposal is not reasonably capable of execution
• Discussions with Challenger have now ceased

Pepper Money Limited (ASX:PPM) has announced that it has ceased discussions with Challenger Limited (ASX:CGF) regarding Challenger's revised non-binding, indicative proposal to acquire Pepper Money at a price of A$2.25 per share. Pepper Money's Independent Board Committee (IBC) considered the revised proposal and, after consultation with shareholders, determined that it is not reasonably capable of execution. Accordingly, the IBC has decided not to proceed with the transaction, and discussions with Challenger have now ceased. Pepper Money noted that the business is well positioned and continues to capitalize on growth opportunities, with application flow and originations showing positive momentum in both Mortgages and Asset Finance for the first two months of 2026 compared to the same period in 2025. Pepper Money also continues to execute on its capital management initiatives, including the payment of a CY2025 fully franked Final Dividend of 7.8 cents per share on 14 April 2026, and will continue to seek opportunities to return excess capital to shareholders.