The Perpetual Ltd (ASX: PPT) share price is in focus after the company rejected a further revised takeover proposal from EQT and confirmed the end of discussions. The $22.50 per share proposal was deemed by the board to undervalue Perpetual and carried too much execution risk.
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What did Perpetual report?
- Rejected a further revised, non-binding buyout offer from EQT at $22.50 per share.
- Proposal included the option for a permitted dividend of up to $0.60 per share for 1H27.
- Board maintained its view that the offer undervalued the company.
- Sale of Wealth Management business remains on track for completion in Q4 FY26.
- Expected move to a net cash position after the sale, offering increased financial flexibility.
What else do investors need to know?
Perpetual says its engagement process with EQT has now concluded, as the latest proposal was described as "best and final" in the absence of competing offers. Shareholders are not required to take any action in response to this announcement.
The board also reiterated that the planned sale of its Wealth Management arm is proceeding as expected, with completion likely by the end of 2026. This sale is anticipated to enhance Perpetual's financial position and allow more capital management initiatives in the future.
What's next for Perpetual?
With the EQT engagement process now closed, Perpetual is focused on its core Asset Management and Corporate Trust businesses. Management highlights a continued commitment to delivering sustainable long-term value to shareholders.
Once the Wealth Management business sale wraps up, Perpetual expects to be in a net cash position, providing room to consider additional capital management options alongside dividends.
Perpetual share price snapshot
Over the past 12 months, Perpetual shares have risen 3%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.
