Trust Company continues to back Perpetual buyout
The Trust Company has once again backed Perpetual’s takeover proposal, after months of holding out for a potential better offer.
After prolonged deliberations over a 100 per cent buy out proposal from Perpetual, board members considered and rejected an alternative Equities Trustees offer after a comparative analysis found it would offer lower share price.
It follows Equities Trustees eleventh hour bid of 39 EQT shares for every 100 TRU shares earlier this week.
However, on an 8.8 per cent premium, the revised Equities Trustees offer was valued at $7.69 per share earlier this week, compared to Perpetual’s $8.37 per share, according to Trust Company figues.
“Accordingly, The Trust Company advises shareholders to reject the Revised Equity Trustees Offer,” an Australian Stock Exchange statement said.
The directors stressed that the revised equity offer was subject to a 90 per cent minimum acceptance condition, meaning if shareholders accepted it they would void the Perpetual offer.
They also warned shareholders could receive significantly less dividends than those estimated by the Equities Trustees.
The shareholders will vote on the proposals on 28 November.
AUTHOR
Staff Writer
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.
