Perpetual Ltd has rejected an unsolicited takeover proposal from an EQT Partners-controlled subsidiary, saying the more than $2.5 billion offer did not adequately value the listed wealth manager.
The indicative proposal came from Windflower Pte Limited at $21.64 per share, representing a premium of almost 40% to Perpetual’s $15.50 closing price on Tuesday.
Perpetual said the offer was “highly conditional” and did not represent fair value for shareholders in the context of a change-of-control transaction.
“The board therefore rejected the indicative proposal,” the company said, adding that shareholders would be updated in line with continuous disclosure obligations.
Bid follows share price surge
The approach emerged after Perpetual entered a trading halt on Wednesday, following market reports that EQT had assembled a bid for the company.
Perpetual shares had already jumped in early trade, prompting the ASX to issue a price query before the company confirmed it had received an approach regarding a potential change-of-control transaction.
Shares last traded at $18.10, up 16.8%, but remain well below record levels reached before a series of acquisitions, including the Pendal deal, weighed on investor confidence.
Long-running restructure in focus
The rejected approach comes after a turbulent period for Perpetual, which has been reshaping its business following the collapse of a planned $2.2 billion sale of its wealth management and corporate trust divisions to KKR.
Earlier this year, Bain Capital agreed to acquire Perpetual’s wealth management unit for $500 million.
EQT and TA Associates had previously participated in Perpetual’s 2024 break-up process but were unsuccessful. Soul Patts and Oaktree were also among the parties that missed out.
EQT looks again at Australia
EQT has been active in Australia after closing a record $22.9 billion Asia Pacific fund, with past deals including Icon Group, Stockland’s retirement living business and VetPartners.
The private equity firm has also explored other local targets, including AUB and Aidacare.
Perpetual reported total assets under management of $219.2 billion at the end of March, alongside corporate trust funds under administration of $1.32 trillion.