EQT raises Perpetual offer to AUD2.55bn in third takeover approach

Swedish private equity firm EQT has increased its offer for Australian asset manager Perpetual to AUD2.55bn, marking its third approach for the company this month, according to a report by Reuters.

The latest proposal values Perpetual at AUD22.50 per share, representing a premium of almost 19% to the company’s previous closing price. It follows two earlier offers that were rejected by the Australian group as undervaluing the business.

EQT’s initial proposal, made on 1 July, was worth AUD21.64 per share. A second approach in mid-July increased the offer to AUD22.07 per share.

Perpetual said it had not yet made a recommendation to shareholders regarding the latest proposal, which remains subject to a number of conditions. These include the completion of the previously announced sale of its wealth management business to Bain Capital.

The transaction with Bain, agreed in March, will provide Perpetual with AUD500m in upfront cash and is intended to simplify the group and sharpen its focus on its remaining operations.

EQT’s latest bid comes as the Swedish firm seeks to expand its exposure to Perpetual’s wealth management and trust businesses. The offer represents an increase of roughly 4% from its initial approach.

Perpetual shares rose as much as 3.5% to AUD19.59 in morning trading, putting the stock on course for its strongest session since 2 July.

The proposed takeover follows several high-profile Australian deals pursued by EQT in recent years. The private equity firm has previously walked away from takeover bids for telecommunications company Vocus, financial software provider Iress and insurance broker AUB Group.