Trust Company recommends Perpetual bid
The Trust Company board has unanimously recommended that shareholders support the acquisition proposal by Perpetual, in the absence of a superior proposal.
Perpetual announced its offer to the Australian Stock Exchange (ASX) this morning, but the acquisition remains subject to Trust Company shareholder and regulatory approval.
Perpetual offered 0.1495 of its shares per every Trust share, equivalent to $6.17 per share, as well as a special dividend of $0.22 per Trust share, expected to be fully franked.
Equity Trustees (EQT) made an earlier bid in February at $5.28 per share, but was deemed too low by The Trust Company Board.
This offer is 18 per cent lower than the value of the Perpetual Proposal, the Trust board highlighted.
"A combination of Perpetual and The Trust Company not only creates significant value for shareholders of both companies but will also provide substantial benefits for clients and staff of the combined group," the board said in a statement released on the ASX.
Equity Trustees announced earlier this week it would continue with its efforts to acquire The Trust Company.
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