EQT makes late play for Trust Company
Equity Trustees (EQT) has stepped up its offer for the Trust Company (TRU) with an eleventh hour unconditional bid of 39 EQT shares for every 100 TRU shares.
The new offer is an increase from 37 EQT shares with EQT stating the increased and unconditional offer is superior to others received by TRU in that it offers the latter’s shareholders a 62.2 per cent ownership in a merged entity compared with 8.4 per cent under the Perpetual offer.
EQT also stated in its announcement to the Australian Stock Exchange that synergies would be $9.3 million per annum compared with $1.3 million under Perpetual and that EQT was a focused trustee business while Perpetual was a diversified financial services provider.
“This increase is based on the significant long term benefits that can be achieved for all shareholders from the logical and compelling combination of the two companies. EQT is a focused business that will provide all TRU shareholders with an ongoing investment in a pure-play trustee company,” EQT chair Tony Killen said.
“EQT’s offer is demonstrably superior for TRU shareholders seeking longer term value, higher dividends and greater ownership. Importantly, shares in EQT are less exposed to the risk of the current equity markets than Perpetual’s large funds management business.”
Trust shareholders are due to meet on November 28 to vote on the competing Perpetual offer.
Recommended for you
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
While efficiency remains a top priority for Australian advisers, State Street has revealed the profession is now juggling this desire with the need to maintain personalisation of its service offering.
A possible acquisition of data provider Iress is becoming a greater likelihood after the firm announced it is engaging with multiple interested parties.
AMP has reported a 61 per cent rise in inflows to its platform, with net cash flow passing $1 billion for the quarter, but superannuation fell back into outflows.
