Key Takeaways:
Swedish private equity firm EQT AB raised its takeover offer for Australia's Perpetual to A$2.50 billion ($1.75 billion), or A$22.07 a share, after the financial services provider rejected an earlier A$2.45 billion proposal earlier this month.
"The board is evaluating the proposal, which among other things is conditional on the sale of Perpetual's asset management business to Bain Capital," Perpetual said in a statement to the ASX on Wednesday. The company stressed there is no certainty the proposal will lead to a binding offer or a transaction.
The revised non-binding indicative proposal from EQT-controlled Windflower represents a 2% premium to the previous offer of A$21.64 a share. Perpetual had rejected EQT's initial A$2.45 billion bid on July 1, saying it undervalued the company. The latest offer values Perpetual at roughly 14 times trailing earnings, according to Bloomberg-compiled data.
The deal structure hinges on a parallel transaction: Perpetual's planned sale of its wealth management and corporate trust divisions to Bain Capital, which would leave EQT acquiring the asset management business. Perpetual completed the A$500 million sale of its wealth unit to Bain in March, ending years of deal disruption that had weighed on the stock. The company's shares have fallen about 18% over the past 12 months as active funds management faced an industry-wide contraction, with star portfolio managers departing for hedge funds including Millennium Management.
Perpetual, which traces its roots to 1886, has been the target of repeated private equity interest as its market value declined amid underperformance in its funds management arm. The company once managed more than A$14 billion in active strategies but has seen assets shrink as investors shifted to passive products. EQT, which managed about EUR 270 billion in assets at the end of 2025, is advised by Barrenjoey Capital Partners on the bid.
This article is for informational purposes only and does not constitute investment advice.
