EQT raises Perpetual bid to about A$2.6bn

Swedish private equity firm EQT AB has raised its takeover proposal for Australian investment manager Perpetual to about A$2.6bn ($1.8bn).

Perpetual said the revised approach values the company at A$22.50 a share.

That is about 2% above the A$22.07-per-share proposal disclosed earlier this month and 4% higher than EQT’s original offer.

The company said the latest proposal remains highly conditional.

It is subject to satisfactory due diligence, the negotiation and execution of binding transaction documents, regulatory approvals and other customary conditions.

The proposal also depends on the completion of the sale of Perpetual’s wealth management business to Bain Capital.

Bain Capital is still expected to acquire that unit for A$550 million, with the transaction due to complete before the end of the year.

Perpetual’s board said it is reviewing the latest approach with its financial and legal advisers.

However, it said it has not yet formed a view on the merits of the proposal.

“No recommendation is being made to shareholders at this time,” the company said.

“The Perpetual board remains confident in Perpetual executing its strategy, including its simplification program, the value of its diversified earnings profile (provided by the corporate trust and asset management businesses) and the execution of the sale of wealth management.”

The latest move comes after Perpetual rejected EQT’s revised A$22.07-a-share proposal made on 17 July.

At that time, the board said the offer was “not in the best interests” of shareholders.

Perpetual also said the latest proposal came from Windflower, which it believes is indirectly controlled by EQT AB.

EQT manages about US$333bn in assets and has an established presence in Australia.