Second bidder emerges for Equity Trustees

Following TPG Global's initial bid for Equity Trustees' holding company last week, a local investor has joined with an improved offer.

EQT Holdings (ASX: EQT) has received a proposal from BGH Capital to acquire 100% of the outstanding shares in EQT at an indicative price of $24.75 per share less any dividends declared or paid.

The offer is a 20-cent premium over TPG Global's offer of $24.55.

EQT said the new proposal is subject to a satisfactory completion of due diligence, final approval from BGH Capital's investment review committee, and the execution of a mutually agreed scheme implementation deed.

The transaction will require approvals from shareholders, regulatory authorities and other customary conditions.

However, unlike TPG Global, BGH Capital has not requested exclusivity arrangements to conduct due diligence and negotiate transaction documentation, the ASX-listed entity said.

The board of EQT, together with its advisers, will evaluate BGH's proposal and will update shareholders in due course.

Shareholders have been informed they do not need to take any action in relation to the offer at this time.

In June, Equity Trustees recently withdrew from providing super trusteeship, announcing it was winding down its subsidiary Equity Trustees Superannuation Limited, following two ASIC lawsuits alleging failures in care, skill and diligence in the recommendation of the First Guardian Master Fund.

Equity Trustees has since announced that it is defending against the claims.

ASIC alleges EQT failed to exercise the same degree of care, skill and diligence as a prudent superannuation trustee would in respect of the Shield Master Fund.

It also failed to act in the best financial interests of its members, do all things necessary to ensure the financial services covered by its AFSL were provided efficiently, honestly and fairly.

ASIC also alleges it increased exposure to Shield by members and their financial advisers on a superannuation platform.