Australia's Perpetual says EQT's $1.78 billion bid not in best interests of shareholders

• EQT's latest bid values Perpetual at A$22.50 per share, totaling approximately $1.78 billion
• The Swedish firm has incrementally sweetened its offer, with the current proposal representing about 4% higher than the initial bid
• Perpetual's board rejected the proposal, signaling resistance to the takeover despite EQT's progressive price increases

Summary

Australian wealth manager and trust business Perpetual has rejected Swedish private equity firm EQT AB's latest takeover bid valued at A$2.55 billion ($1.78 billion), stating the proposal is not in the best interests of shareholders.

Key Transaction Details:

• EQT's current offer stands at A$22.50 per share
• The bid represents approximately 4% increase from EQT's initial approach
• EQT has progressively sweetened its offer in pursuit of the Australian firm
• Announcement made July 29

Companies Involved:

• Perpetual: Australian wealth management and trust services company (target)
• EQT AB: Swedish private equity firm (acquirer)

Market Implications:

The rejection suggests Perpetual's board believes the company is undervalued at current offer levels, despite EQT's incremental bid improvements. This indicates potential for either higher offers from EQT or competing bidders, or management's confidence in standalone growth prospects.

The pursuit reflects continued interest from international private equity firms in Australia's wealth management sector, which remains attractive despite global market volatility. EQT's persistent approach through multiple revised offers demonstrates strong strategic interest in expanding its presence in the Asia-Pacific wealth management market.

Current Status:

EQT has not yet responded to Perpetual's rejection. The market will be watching for whether EQT returns with an improved offer or withdraws from the process. For Perpetual shareholders, the board's rejection may signal expectations for better value, either through alternative transactions or organic business performance.