Australia-based Perpetual on Wednesday announced it had declined a non-binding takeover proposal from Swedish private equity firm EQT AB that placed a value of A$2.45 billion on the financial services firm. EQT's indicative bid proposed an all-cash purchase at A$21.64 per share, which represented almost a 40% premium relative to Perpetual's closing price on Tuesday.
Following the emergence of the proposal, Perpetual's stock rose sharply in intraday trade, advancing as much as about 17% to A$18.13 on Wednesday before the company was placed on a trading halt ahead of its formal announcement to the exchange.
In a filing lodged after market hours, Perpetual said the indicative approach was "highly conditional" and did not sufficiently convey fair value for Perpetual shareholders in the context of a change of control transaction. The company therefore rejected the proposal. The statement noted the conditional nature of the bid as well as its assessment of shareholder value as the basis for the refusal.
EQT did not immediately respond to a Reuters request for comment.
The refusal comes after a series of strategic moves and takeover approaches involving Perpetual in recent years. Earlier this year Perpetual disclosed plans to sell its wealth management arm to U.S. private equity firm Bain Capital for an upfront cash payment of A$500 million. That separation followed an earlier A$2.18 billion agreement involving KKR in 2024 that ultimately did not proceed, prompting Perpetual to pursue a standalone sale of the business.
Perpetual, founded in 1886, has been the subject of multiple takeover approaches across recent years. The company rejected a A$1.7 billion bid in 2022 from a consortium that included portfolio manager Regal Partners, and in 2023 it turned down a A$3.1 billion proposal from its largest shareholder, Washington H. Soul Pattinson.
Market context and immediate reaction
The A$21.64 per-share cash offer and the subsequent intraday jump in Perpetual's share price underline the market sensitivity to takeover speculation and premium offers in the financial services sector. Perpetual's public statement emphasizes the company's view of fair value and the importance of deal certainty in change-of-control situations.