EQT AB lifts Perpetual bid to $22.50 a share

EQT AB has again upped its takeover bid for Perpetual, raising the offer price to $22.50.

The private equity firm put in a revised offer price yesterday, which represents a 2% increase on the previous $22.07-per-share proposal announced in mid-July and a 4% increase on its original $21.64-per-share bid lodged on July 1.

Perpetual said the proposal remains highly conditional and is subject to a range of requirements, including the satisfactory completion of due diligence, negotiation and execution of binding transaction documents, regulatory approvals and other customary conditions.

Importantly, the proposal is also contingent on completion of the sale of Perpetual's wealth management business to Bain Capital.

Bain Capital is on track to acquire Perpetual's wealth management business for $550 million, in a deal expected to finalise before the end of the year.

The Perpetual board said it is assessing the latest approach with the assistance of its financial and legal advisers but 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 development follows Perpetual's rejection of EQT's revised $22.07-per-share offer made on July 17.

The Perpetual board ultimately found the proposal offer was "not in the best interests" of its shareholders.

Perpetual added the offer came from Windflower, which it believes to be an entity that is indirectly controlled by EQT AB.

EQT AB is one of the world's largest private equity managers, with about US$333 billion ($476bn) in assets under management and an established presence in the Australian market.