Perpetual rejects EQT-linked takeover bid

Perpetual Ltd has declined an unsolicited takeover proposal from Windflower Pte, an entity indirectly controlled by Swedish private equity firm EQT AB. The fund manager said the approach was indicative, non-binding and conditional, and that it did not believe the terms were in the best interests of shareholders.

The bid offered A$21.64 in cash per Perpetual share. Reporting stated that this implied a valuation of about A$2.5 billion for the company, or roughly $1.7 billion, with some coverage citing slightly different headline figures but all around that range.

Perpetual described the proposal as highly conditional and said it did not adequately represent fair value for Perpetual shareholders. On that basis, the board determined the offer should be rejected rather than progressed.

The company characterised the approach as unsolicited, underlining that it had not sought a buyer before Windflower Pte made contact. The proposal was also described as indicative and non-binding, signalling that key terms were not yet finalised and would have been subject to further negotiation and due diligence.

Perpetual stated that any per-share cash amount under the proposal would have been reduced by the value of dividends, capital returns or distributions declared or paid by the company. This meant the ultimate cash consideration to shareholders could have been lower than the headline A$21.64 per share, depending on future corporate actions.

Coverage noted modest variations in how the overall enterprise value was expressed, with some reports citing around A$2.5 billion and others about A$2.45 billion, or approximately $1.69 billion to $1.8 billion. All figures reflected the same A$21.64 headline cash offer applied to Perpetual’s equity.

Perpetual’s share price rallied sharply after speculation of a deal and subsequent confirmation of the approach. The stock climbed about 16.7–16.8% on the day, reaching around A$18.10 in intraday trading before the company’s announcement.

Trading in Perpetual shares was placed in a halt earlier in the session, pending the company’s disclosure of the proposal. The halt allowed the market to receive detailed information on the bid and the board’s response before trading resumed.

The strong price move brought the market valuation closer to, but still below, the A$21.64 indicative offer level. The rejection leaves Perpetual continuing as an independent listed fund manager, with no alternative transaction disclosed in connection with this approach.