Why is EQT Holdings stock surging today?

EQT Holdings stock experienced a significant surge, climbing nearly 10% to A$22.18 on Friday. This rise came after Australian private equity firm BGH Capital made an unsolicited, non-binding takeover proposal for the Melbourne-based wealth manager. The offer, valued at A$663 million, or A$24.75 per share, surpasses the previous competing bid from U.S.-based TPG Global.

TPG's proposal, while still higher than EQT's prior close, was not as appealing as BGH's, as it was 0.8% lower than BGH's offer. The competitive bidding dynamic intensified after EQT released its FY26 annual results the previous day, providing the market with a clearer picture of the company's financial standing following a challenging period.

EQT's stock had plummeted from a 52-week high of A$34.50 to a low of A$14.70 earlier in the year due to ASIC civil proceedings related to the collapse of the First Guardian Master Fund and EQT's decision to exit its independent superannuation trusteeship business. These factors had opened the door for private equity interest in the company.

However, the broader Australian market provided no additional support on Friday, with the S&P/ASX 200 trading slightly in the red.