Private equity firm EQT has increased its takeover proposal for Australian financial services group Perpetual to AUD2.5bn ($1.75bn), less than two weeks after the company’s board rejected its initial offer as insufficient, according to a report by Reuters.
The revised non-binding proposal values Perpetual at AUD22.07 per share, representing a premium of almost 22% to the company’s closing share price on 1 July, before the initial approach was disclosed, and more than 42% above its 30 June closing price.
The improved bid is approximately 2% higher than EQT’s earlier AUD2.45bn proposal. Perpetual’s shares have risen more than 17% since news of the Swedish buyout firm’s interest emerged.
Perpetual said its board is evaluating the revised proposal but emphasised there is no certainty that discussions will result in a binding transaction.
The company also disclosed that EQT’s latest proposal included a confidentiality provision under which the offer would automatically lapse if it became public. Perpetual said it nevertheless believed it was appropriate to inform shareholders that it had received the revised approach.
The latest offer represents another attempt by EQT to expand its presence in Australia through public market acquisitions. Last year, the private equity firm abandoned its proposed AUD5.25bn acquisition of insurance broker AUB Group after failing to secure a deal.
Founded in 1886, Perpetual has become a recurring takeover target in recent years. The company rejected a AUD1.7bn approach from a consortium including Regal Partners in 2022, followed by a AUD3.1bn proposal from its largest shareholder, Washington H Soul Pattinson, in 2023.
