Perpetual rejects EQT’s revised $2.55b acquisition offer
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The news: Financial services company Perpetual has rejected EQT-controlled Windflower’s revised $2.55 billion offer because it “does not adequately represent fair value” for shareholders, the target told the exchange.
The numbers: The revised indicative proposal of $22.07 per share was 2% higher than an earlier $21.64 per share offer that Perpetual told the market on 1 July it had rejected.
Perpetual shares last closed at $19.21 each, although they are down 9.4% over the last 12 months.
The context: After consideration with financial adviser Bank of America and legal adviser Mallesons, the Perpetual board rejected the revised indicative offer because it “does not adequately represent fair value for Perpetual shareholders in the context of a change of control transaction and that it is not in the best interests of Perpetual shareholders”.
The revised bid contained a clause that said it would be automatically withdrawn if publicly revealed. It was announced to the exchange by Perpetual on Wednesday evening; however, both the target and bidder appeared to treat the offer as still being active.
On Friday, Perpetual said that “notwithstanding the inclusion of that provision in the revised indicative proposal, the Perpetual board considered it appropriate to still formally advise Perpetual shareholders of its view on the Revised Indicative Proposal”.
The source: ASX
