KKR & Co LP has added a small sweetener to its bid for Australia’s Pepper Group, caving to a demand from the non-bank lender’s biggest shareholder and bringing the deal value to A$682 million ($543 million).

With the new offer, which sent Pepper’s shares surging, the U.S. buyout firm gains a slice of Australia’s A$1.7 trillion mortgage market while investors will be able to cash in at a 42 percent premium to its IPO price two years earlier.

KKR announced a special dividend of 10 cents per share on Monday – appeasing Perpetual Investments Ltd, Pepper’s top shareholder with a 14.7 percent stake, which had said it was unhappy with the A$657 million offer the lender had agreed to in August.

READ FULL ARTICLE HERE