Key facts
- Perpetual rejected a takeover proposal from EQT valued at A$2.45 billion ($1.69 billion).
- The offer included A$21.64 per share, a 40% premium to the closing price.
- Perpetual stated the proposal was conditional and did not reflect fair value.
- The company's shares rose approximately 17% following the news.
- Perpetual is also in the process of divesting its wealth management arm to Bain Capital.
Australia's Perpetual has rejected a non-binding takeover proposal from Swedish private equity firm EQT AB, which valued the financial services provider at A$2.45 billion ($1.69 billion). The offer included A$21.64 per share in cash, representing a nearly 40% premium to Perpetual's closing price on Tuesday.
Perpetual stated in a filing that the indicative proposal was highly conditional and did not adequately represent fair value for its shareholders in the context of a change of control transaction. The Sydney-headquartered firm's shares had jumped approximately 17% to A$18.13 before trading was halted ahead of the announcement.
This rejection comes as Perpetual is also proceeding with plans to divest its wealth management arm to U.S. private equity firm Bain Capital for an upfront cash payment of A$500 million. This sale is part of a broader strategy following a previous A$2.18 billion deal with KKR that fell through.
Founded in 1886, Perpetual has a history of facing takeover interest, having previously rejected bids from a consortium including Regal Partners in 2022 and an offer from its largest shareholder, Washington H Soul Pattinson, in 2023.