Story
Perpetual Rejects EQT's 'Best and Final' A$22.50 Per Share Takeover Bid
Summary
The Sydney-based financial services firm said the revised cash offer from the private equity group undervalues the company and carries unacceptable execution risk, effectively ending negotiations.
Sydney-based Perpetual Limited has rejected a revised cash takeover offer from private equity firm EQT AB, stating that the A$22.50-per-share proposal undervalues the company and is not in the best interests of its shareholders.
In a statement on Monday, Perpetual's board announced it had turned down the bid, which was submitted by Windflower Pte. Limited, an entity the company understands is indirectly controlled by EQT.
Details of the Rejection
The offer price was unchanged from a previous proposal made by EQT on July 27, which Perpetual's board had also deemed inadequate. The company cited conditions and assumptions attached to the latest bid as creating an "unacceptable level of execution risk."
Perpetual said that while the proposal would have allowed for a dividend of up to A$0.60 per share for the six months ending Dec. 31 without reducing the offer price, the company had not yet made a decision regarding a dividend payment. EQT had previously described its offer as its best and final proposal in the absence of a competing bid.
AdEnd of Talks and Strategic Focus
Following the rejection, Perpetual said it now considers discussions with EQT to be over. This decision removes the takeover bid as a factor for investors and clears the path for the company's existing strategic initiatives.
Perpetual confirmed that the board's decision will not affect its previously announced plan to sell its Wealth Management business. The company still expects that transaction to be completed in the fourth quarter of 2026, after which it anticipates having a net cash position. The firm plans to concentrate on its remaining Corporate Trust and Asset Management businesses.
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