Australian asset manager Perpetual said it received a higher offer of A$2.55 billion, or approximately $1.78 billion, from Swedish private equity firm EQT AB after rejecting two earlier bids in July, according to Reuters. The new approach adds pressure on the Australian financial services firm as it works to reshape its business.
EQT’s latest proposal values Perpetual at A$22.50 per share, a premium of nearly 19 percent to the stock’s last closing price and above the firm’s earlier bids of A$21.64 per share on July 1 and A$22.07 per share in mid-July, both of which Perpetual rejected on the grounds that they undervalued the company. The latest offer represents roughly a 4 percent increase over EQT’s initial approach. Perpetual said it has not made any recommendation to shareholders regarding the sweetened bid, which remains subject to several conditions, including completion of the sale of Perpetual’s wealth management unit to Bain Capital. That deal, agreed in March for upfront cash proceeds of A$500 million, was intended to simplify the group and sharpen its focus on its remaining operations.
Shares of Perpetual rose as much as 3.5 percent to A$19.590 following the announcement, on track for their best session since July 2. EQT has previously walked away from several high-profile Australian takeover pursuits, including bids for telecommunications provider Vocus, financial software firm Iress, and insurance broker AUB Group.
