Australian asset manager Perpetual said on Monday it had received a higher A$2.55-billion ($1.78 billion) offer from Swedish private equity firm EQT AB after rejecting two earlier bids this month.
The new approach adds to pressure on the Australian financial services firm as it reshapes its business.
In March, it agreed to sell its wealth management arm to Bain Capital for upfront cash proceeds of A$500 million, in a deal meant to simplify the group and sharpen its focus on remaining operations.
EQT’s latest proposal values Perpetual at A$22.50 a share, a premium of nearly 19% to the stock’s last closing price and above the group’s earlier bids of A$21.64 a share on July 1 and A$22.07 apiece in mid-July. Perpetual had rejected both earlier offers, saying they “undervalued the firm.”
The Australian company said on Monday it had not made any recommendation to shareholders on the sweetened bid and that it remained subject to several conditions, including completion of the sale of its wealth management unit to Bain Capital.
Shares of Perpetual rose as much as 3.5% to A$19.590 and were on track for their best session since July 2.
EQT has progressively sweetened its offer as it pursues the Australian wealth manager and trust business, with the latest proposal representing a roughly 4% increase from its initial approach.
The Swedish group previously walked away from several high-profile Australian takeover pursuits, including bids for telecommunications provider Vocus, financial software firm Iress IRE.AX, and insurance broker AUB GroupAUB.AX.
($1 = 1.4306 Australian dollars)
Reuters
