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FinanceEQT raises Perpetual takeover bid to about A$2.6bn
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Swedish private equity firm EQT AB has raised its takeover proposal for Australian investment manager Perpetual to approximately A$2.6bn ($1.8bn), valuing the company at A$22.50 per share. This is about 2% above the previous A$22.07-per-share proposal disclosed earlier in July and 4% higher than EQT's original offer. The revised proposal remains highly conditional, subject to satisfactory due diligence, regulatory approvals, and the completion of Perpetual's sale of its wealth management business to Bain Capital for A$550 million. Perpetual's board is reviewing the latest approach with its financial and legal advisers but has not yet formed a view on the merits of the proposal, stating no recommendation is being made to shareholders at this time. The board previously rejected EQT's earlier A$22.07-a-share proposal, deeming it not in the best interests of shareholders. EQT manages about US$333bn in assets and has an established presence in Australia.
Source report
Swedish private equity firm EQT AB has increased its takeover proposal for Australian investment manager Perpetual to approximately A$2.6 billion (US$1.8 billion).
According to Perpetual, the revised offer values the company at A$22.50 per share — roughly 2% above the A$22.07-per-share proposal disclosed earlier this month and 4% higher than EQT's original bid.
Conditions and Contingencies
Perpetual stated that the latest proposal remains highly conditional, subject to:
- Satisfactory due diligence
- Negotiation and execution of binding transaction documents
- Regulatory approvals
- Other customary conditions
The proposal is also contingent on the completion of the sale of Perpetual's wealth management business to Bain Capital. Bain Capital is still expected to acquire that unit for A$550 million, with the transaction due to close before the end of the year.
Board Review
Perpetual's board said it is reviewing the latest approach with its financial and legal advisers but has not yet formed a view on the merits of the proposal.
"No recommendation is being made to shareholders at this time," the company stated. "The Perpetual board remains confident in Perpetual executing its strategy, including its simplification program, the value of its diversified earnings profile (provided by the corporate trust and asset management businesses) and the execution of the sale of wealth management."
Background
This latest move follows Perpetual's rejection of EQT's revised A$22.07-per-share proposal made on July 17, which the board said was "not in the best interests" of shareholders.
Perpetual also noted that the latest proposal came from Windflower, which it believes is indirectly controlled by EQT AB.
EQT manages approximately US$333 billion in assets and has an established presence in Australia.
This article was originally created and published by Private Banker International, a GlobalData owned brand.
Source
Yahoo FinanceWestern
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EQT raises Perpetual takeover bid to about A$2.6bn