Perpetual Shares Plunge Over 15% After Rejecting EQT's Final Takeover Bid

Shares of Australian asset manager Perpetual (ASX:PPT) plunged 15.1% on Monday after the company’s board rejected what it described as a “best-and-final” takeover proposal from Swedish private equity firm EQT AB.

The collapse of the deal erased a significant premium that had been priced into the stock, sending shares down to A$16.64 and ending months of speculation.

The Rejected Offer

Perpetual announced it had concluded all engagement with EQT after its board determined the revised proposal continued to undervalue the company. The offer, made through EQT's controlled entity Windflower Pte Limited, was for A$22.50 per share.

EQT had attempted to sweeten the deal by allowing Perpetual to pay an interim dividend of up to A$0.60 per share without reducing the offer price. This would have brought the total potential value for shareholders to A$23.10 per share. However, the board remained unconvinced, also citing an “unacceptable level of transaction execution risk” linked to assumptions in the proposal.

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Market Impact

The market’s reaction to the termination of talks was immediate and severe. The sharp drop in Perpetual's stock price reflects the unwinding of takeover expectations that had supported its valuation.

With the deal now off the table, the stock retreated toward levels near its 52-week low of A$15.10. The broader market provided little support, as the benchmark ASX 200 index traded sideways on Monday.