Equity Trustees pushes bidders for better price

Equity Trustees' parent company EQT Holdings' board confirmed it is engaging with its two bidders - TPG Global and BGH Capital - and has pushed for an improved offer from both.

EQT said the board concluded the offer price from both firms do not adequately reflect the value of the trustee.

BGH Capital has offered to acquire 100% of the outstanding shares in EQT at a price of $24.75 per share. This is at a 20-cent premium over TPG Global offer of $24.55 per share.

"The board had offered each party the opportunity to receive some substantive non-public information to enable each party to put forward an improved proposal for consideration by the board," EQT said.

EQT has sent a confidentiality draft to both firms as the information provided is non-public information.

"The company notes there is no certainty that the proposals will result in a formal binding offer for EQT or that any transaction will eventuate," EQT said.

Both TPG and BGH said the indicative offer price will not be reduced by the FY26 final dividend of 20 cents per share. Both have also confirmed the offer is not conditional on Equity Trustees exiting from its superannuation trustee business as well as the ASIC litigation currently ongoing in the court.

Equity Trustees attributed a "shifting regulatory environment, higher operating costs and the evolving risk profile" as reasons to exit the super trustee business.

ASIC proceedings into Equity Trustees alleges failures in care, skill and diligence concerning the decision to allow members to invest in the First Guardian Master Fund and Shield Master Fund.

Both collapses have led close to $143 million in losses to members in funds under Equity Trustees' trusteeship.

Equity Trustees continues to defend its position noting it was responsible entities, advisers and third-party research houses responsible for the failure, and has declined to pay back member losses.