After its curious A$22.07/share self-destructing NBIO on the 15th July, EQT returned a fortnight later with a A$22.50/share NBIO for Perpetual Ltd (PPT AU), by way of a Scheme.
With a 45.2% premium, and optically fair, I thought Perpetual might engage. Perpetual rejected terms on the 29th July. Then crickets. Reportedly Janus Henderson was circling; while EQT continued DD.
EQT has returned with a A$22.50/share Offer, plus upward of a 1H27 dividend of A$0.60/share, without adjustment. Best & final. Perpetual says no dice. That’s the wrong decision.
The Trade:
Perpetual is not outwardly expensive.
It’s not particularly exciting either.
Client redemptions in FY26 was A$25.1bn - AUM dipped 1% to A$224.4bn.
Forward PER multiples for peers have fallen 20% on average since EQT’s re-emerged bid in mid-July.
Perpetual should have engaged and put the Scheme to shareholders.
I’m not bearish here; but it’s not a strong conviction trade.