Perpetual rejects latest EQT bid but opens door to improved offer

Australian investment manager Perpetual has rejected a revised takeover approach from Swedish private equity firm EQT, while signalling its willingness to continue discussions in the hope of securing a more attractive offer, according to a report by Bloomberg.

The latest non-binding proposal valued Perpetual at approximately AUD2.6bn, offering shareholders AUD22.50 per share. Although this represented an increase of around 4% on EQT’s initial approach earlier this month, Perpetual’s board concluded that the proposal did not adequately reflect the company’s value or serve the best interests of shareholders.

Despite rejecting the offer, Perpetual said it is prepared to engage further with EQT and provide access to selected non-public information to support due diligence and facilitate discussions around a potential revised proposal.

The company cautioned, however, that granting due diligence access does not guarantee a binding takeover bid will ultimately emerge.

EQT has been pursuing Perpetual since early July, with the investment manager becoming the focus of renewed private equity interest after a prolonged decline in its market value. Perpetual’s shares had fallen by more than 60% between late 2021 and the end of June before rebounding following news of EQT’s initial approach. The stock recently reached its highest level since October.

Perpetual has attracted interest from financial sponsors on several occasions and has previously resisted takeover attempts. Earlier this year, the firm agreed to sell its wealth management business to Bain Capital for AUD500m as part of a broader strategic restructuring.