Perpetual rejects EQT bid again as growth continues

Perpetual has rejected EQT's latest $22.50 share takeover proposal, saying it does not reflect the value of the business, while agreeing to provide the private equity group with limited access to non-public information to determine whether it can formulate an improved offer.

The board said the further revised non-binding indicative proposal was not in shareholder's best interests after considering the price and other terms with its financial and legal advisers. However, it remains open to engaging with EQT on a non-exclusive basis, subject to a confidentiality and standstill agreement, to assess whether a superior proposal can be developed.

The update came as Perpetual reported growth across all three of its business divisions in the June quarter, with strong gains in Corporate Trust and Wealth Management helping offset continued net outflows in its Asset Management business.

Perpetual chief executive and managing director Bernard Reilly said the group delivered another quarter of growth while progressing the planned sale if its Wealth Management division to Bain Capital.

"We delivered another quarter of growth across the business, with Corporate Trust continuing to perform strongly, Asset Management benefitting from positive market movements despite flow challenges, and Wealth Management reporting FUA growth and net inflows," Reilly said.

Corporate Trust remained the standout performer, with funds under administration increasing 2.4% over the quarter to $1.35 trillion, supported by growth across debt market services, managed funds services and digital businesses.

"In line with our strategy to invest in new capabilities to support long-term growth in Corporate Trust and retain its strong market leadership, we also announced the acquisition of a majority interest in Interfi Systems," Reilly said.

Asset Management funds under management rose 2.3% to $224.4 billion, driven by $17.5 billion in positive market movements, although this was partly offset by net outflows of $12.3 billion. Outflows were concentrated across Barrow Hanley, TSW and Pendal, while J O Hambro experienced more stable flow trends than in recent quarters.

Meanwhile, Wealth Management funds under advice increased 5% to $22.1 billion, supported by market gains and modest net inflows, with the sale to Bain Capital remaining on track to complete in the final quarter of calendar 2026.

Perpetual also said total expense growth for FY26 is now expected to be at the lower end of its previously guided 1% to 2% range, reflecting favourable foreign exchange movements and ongoing cost discipline under its Simplification Program.

The company added it had reduced gross debt by around 15% since December and experts to be net debt free in a pro forma basis following completion of the Wealth Management sale, while continuing to assess broader capital management initiatives alongside future dividends.