Perpetual rejects revised EQT takeover offer, citing undervaluation

Perpetual Limited, a Sydney-based firm, has once again turned down a revised A$22.50-per-share cash takeover offer from EQT AB. The company maintains that the offer does not accurately reflect its value and fails to consider the best interests of its shareholders. EQT's proposal, which was also rejected previously, remains unchanged from the July 27th offer.

Perpetual's board has expressed concerns over the conditions outlined in the latest offer and the assumptions that underpin the deal, deeming the level of execution risk as unacceptable. The proposal, submitted by Windflower Pte. Limited, an entity believed to be indirectly controlled by EQT, aims to acquire the entirety of Perpetual through a scheme of arrangement.

Under this proposal, Perpetual could declare a dividend of up to A$0.60 per share over the next six months without reducing the A$22.50 offer price. The company has not yet decided whether or not to pay this dividend. EQT has stated that this offer is its best and final proposal, in light of no competing bids. Perpetual has indicated that it has concluded discussions with EQT.

The rejection of this offer will not impact the company's plans to sell its Wealth Management business, which is expected to be completed in the fourth quarter of 2026. This sale is anticipated to leave Perpetual with a net cash position, after which the firm intends to concentrate on its Corporate Trust and Asset Management divisions. This report was produced using artificial intelligence and has been reviewed by an editor.