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Australia's Perpetual Turns Down AU$2.45 Billion EQT Buyout Bid

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Australia's Perpetual Turns Down AU$2.45 Billion EQT Buyout Bid

Australian investment fund Perpetual (ASX:PPT) has turned down a takeover approach from Swedish private equity firm EQT AB, saying the proposal undervalued the financial services company, according to a Wednesday press release.

Under the proposal, EQT-controlled Windflower Pte Limited offered to acquire all of Perpetual's shares for AU$21.64 apiece in cash, valuing the company at about AU$2.45 billion.

"The indicative proposal was highly conditional and did not adequately represent fair value for Perpetual shareholders in the context of a change of control transaction," the company said in a statement.

The approach comes after Perpetual terminated an AU$2.2 billion deal with private equity firm KKR in 2025 to sell its wealth management and corporate trust businesses.

The transaction was scrapped after an independent expert concluded it was not in the best interests of shareholders following an adverse tax ruling.

Perpetual said it would instead pursue a separate sale of its wealth management business.

The investment manager subsequently agreed to sell its wealth management business to Bain Capital for an upfront cash payment of AU$500 million, with additional performance-linked payments of up to AU$50 million.

The company said the proceeds would be used to reduce debt and support growth in its asset management and corporate trust businesses.

The latest proposal adds to a string of takeover attempts for the investment manager.

Perpetual rejected an AU$1.7 billion bid from a consortium that included Regal Partners in 2022, before turning down an AU$3.1 billion offer from its largest shareholder, Washington H. Soul Pattinson, the following year.

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