EQT sweetens pursuit of Australia's Perpetual with $1.75 billion bid
Revised Offer Details and Market Response
By Rajasik Mukherjee and Kumar Tanishk
Background of the Takeover Bid
July 15 (Reuters) - Australia's Perpetual said on Wednesday it received a sweetened A$2.5 billion ($1.75 billion) takeover proposal from Sweden's EQT AB, less than two weeks after rejecting the private equity firm's earlier offer, deeming it inadequate.
Terms of the Revised Proposal
Under the revised offer, EQT would buy all of Perpetual's shares for A$22.07 per share, a near-22% premium to the financial services provider's close on July 1, before it disclosed the initial approach to the market.
The latest bid is 2% higher than EQT's earlier A$2.45 billion proposal, which Perpetual rejected. Its shares have gained more than 17% since July 1.
Board and Market Reaction
The board said it was assessing the revised offer but cautioned there was no certainty it would result in a binding transaction.
Perpetual also disclosed that EQT's revised proposal included a confidentiality clause stipulating that the offer would be automatically withdrawn if made public.
The company said it nonetheless "considers it appropriate to inform Perpetual shareholders of its receipt."
Industry Analysis and Previous Bids
Expert Opinions
Emanuel Ajay Datt, managing director at fund manager Datt Capital, however, raised doubts about the deal, saying "EQT will face strong competition for any serious bid, and it is unlikely that EQT will be capable of securing the asset, given their poor track record of completion in Australian public market M&A."
History of EQT's Pursuits
Last year, EQT lobbed an A$5.25 billion bid to take over insurance broking firm AUB Group, but dropped its pursuit in December.
Perpetual's Legacy and Previous Takeover Interest
Founded in 1886, Perpetual was established as a trustee company by a group of businessmen, including Edmund Barton, who later became Australia's first Prime Minister.
The improved bid is the latest twist in an increasingly public tug-of-war over the storied Australian firm, which has now rebuffed takeover interest from at least three different suitors since 2022, including its own largest shareholder.
In 2022, it rejected an A$1.7 billion takeover bid from a consortium including portfolio manager Regal Partners, and the next year it turned down an A$3.1 billion offer from its top shareholder, Washington H Soul Pattinson.
Exchange Rate Information
($1 = 1.4310 Australian dollars)
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Vijay Kishore)
