Perpetual Limited has rejected EQT’s further revised takeover proposal and formally concluded its engagement with the Swedish buyout firm, bringing an end to a months-long acquisition process. The rejection means shareholders will not receive the $22.50 per share cash offer that EQT outlined in its latest proposal, which was presented as a best and final offer.
EQT’s Further Revised Proposal maintained the $22.50 scheme consideration, unchanged from a July 27 proposal that the board had already dismissed. The revised offer did include one additional element, permitting Perpetual to declare and pay a dividend of up to $0.60 per share without any reduction to the scheme consideration. This would have provided shareholders with combined consideration of $23.10 per share if the maximum dividend were paid, though the board noted any such dividend remains subject to financial and regulatory conditions that cannot be assured at this time.
The board’s decision to reject the proposal rested on two core concerns. First, the directors determined that the $22.50 offer undervalued Perpetual and its future prospects. Second, and perhaps more consequentially, the board identified what it characterized as an unacceptable degree of transaction execution risk embedded in EQT’s conditions and assumptions. These structural elements created sufficient uncertainty that the board concluded shareholders faced material downside risk should the transaction proceed.
The rejection carries strategic significance by removing any immediate acquisition threat while also demonstrating management’s confidence in the company’s independent trajectory. Perpetual is actively executing a divestiture program, with the sale of its Wealth Management business expected to complete in the fourth quarter of 2026. Once that transaction closes, the company anticipates moving into a net cash position, which will substantially enhance financial flexibility and create room for increased capital management options alongside dividends.
For shareholders, the rejection represents a bet that management can unlock more value independently than EQT was offering. Success depends on the Wealth Management sale completing on schedule and the company’s capacity to redeploy capital efficiently. The board’s willingness to walk away from an offer that was twice presented suggests meaningful confidence in both the divestiture and the remaining core business trajectory.
Investors should monitor progress on the Wealth Management sale completion and any capital management announcements once net cash is achieved. The board’s emphasis on enhanced financial flexibility suggests capital returns to shareholders may increase materially in the months ahead. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Perpetual Limited (ASX: PPT)
Perpetual Limited is an independent financial services group that provides investment management, wealth advice, and corporate fiduciary services globally. The company operates through three segments: Asset Management, which is a global multi-boutique asset manager; Wealth Management, offering financial planning and trustee services to high-net-worth clients; and Corporate Trust, providing fiduciary and digital solutions to the banking and financial industry. The company is headquartered in Sydney, Australia and was founded in 1886.
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