EQT Sweetens Takeover Bid for Australia's Perpetual to A$2.5 Billion

Swedish private equity firm EQT AB has submitted a sweetened non-binding takeover proposal for Australia’s Perpetual, raising its offer to A$2.50 billion ($1.75 billion). The move escalates EQT's pursuit of the 140-year-old financial services group after its initial approach was rejected.

The Revised Offer

Perpetual announced on Wednesday that the new proposal values its shares at A$22.07 each. According to the company, this represents a premium of nearly 22% to its closing price on July 1, the day before EQT's first bid was publicly disclosed.

The latest offer is an increase from EQT's previous A$2.45 billion proposal. Perpetual's board had rejected that initial bid, determining that it did not adequately reflect the company's intrinsic value.

Board Position and Context

Perpetual's board stated it is currently assessing the revised offer. However, it cautioned shareholders that there is no certainty the proposal will lead to a binding transaction. This latest development signals continued M&A interest in Australia's wealth management sector.

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For investors, the board's careful consideration and public caution highlight the preliminary nature of the bid. The outcome will depend on EQT’s ability to satisfy the board's valuation expectations and the successful completion of due diligence.

A History of Takeover Approaches

The renewed bid from EQT is the latest in a series of unsolicited offers for Perpetual in recent years. The company has a track record of fending off suitors it believes undervalue its business.

• In 2022, Perpetual rejected a A$1.7 billion takeover bid from a consortium that included portfolio manager Regal Partners.
• The following year, it turned down a A$3.1 billion offer from its largest shareholder, Washington H Soul Pattinson.