EQT lifts Perpetual bid to $1.78 billion in third approach this month
Details of EQT's Latest Bid and Perpetual's Response
Background of the Offer
July 27 (Reuters) - Australian asset manager Perpetual said on Monday it had received a higher A$2.55-billion ($1.78 billion) offer from Swedish private equity firm EQT AB after rejecting two earlier bids this month.
The new approach adds to pressure on the Australian financial services firm as it reshapes its business.
Perpetual's Strategic Moves
Sale of Wealth Management Arm
In March, it agreed to sell its wealth management arm to Bain Capital for upfront cash proceeds of A$500 million, in a deal meant to simplify the group and sharpen its focus on remaining operations.
Bid Details and Shareholder Considerations
Valuation and Bid History
EQT's latest proposal values Perpetual at A$22.50 a share, a premium of nearly 19% to the stock's last closing price and above the group's earlier bids of A$21.64 a share on July 1 and A$22.07 apiece in mid-July. Perpetual had rejected both earlier offers, saying they "undervalued the firm."
Shareholder Recommendation Status
The Australian company said on Monday it had not made any recommendation to shareholders on the sweetened bid and that it remained subject to several conditions, including completion of the sale of its wealth management unit to Bain Capital.
Market Reaction and Industry Context
Market Response
Shares of Perpetual rose as much as 3.5% to A$19.590 and were on track for their best session since July 2.
EQT's Acquisition Strategy
Progression of Offers
EQT has progressively sweetened its offer as it pursues the Australian wealth manager and trust business, with the latest proposal representing a roughly 4% increase from its initial approach.
Previous Takeover Attempts
The Swedish group previously walked away from several high-profile Australian takeover pursuits, including bids for telecommunications provider Vocus, financial software firm Iress, and insurance broker AUB Group.
Additional Information
($1 = 1.4306 Australian dollars)
(Reporting by Rajasik Mukherjee; Editing by Tom Hogue and Subhranshu Sahu)