TRU continues to recommend the Perpetual offer, but EQT has said it can confirm its estimated synergies of $11 to $15 million per year.
TRU had recommended its shareholders take up an offer from Perpetual until a fresh bid from IOOF took precedence earlier this month. However, under the Scheme Implementation Agreement, Perpetual was able to make a revised proposal and was able to sway the TRU board with an upgraded offer.
EQT has extended its offer until November 29, saying it represents higher long-term value than either the Perpetual or IOOF bids, and may result in higher shareholder dividends.
The company also noted that TRU increased the higher end of its estimated range of synergies by one third, to $10 million per annum. It said the reciprocal due diligence process and discussions were cut short due to a revised proposal from Perpetual, meaning TRU may be basing its view on incomplete information.
“EQT is still confident that the previously estimated level of cost synergies is achievable,” said EQT managing director Robin Burns.
“Additionally, there are many opportunities for the combined company to grow revenue and market share. Overall, we believe that synergies are likely to be at the top end of our estimated range.”
EQT said it offered a greater level of synergies than Perpetual or IOOF, with a 62 per cent shareholding of former TRU shareholders in the combined group, compared to 5 to 10 per cent for IOOF and 7 to 13 per cent for Perpetual.
Based on estimated synergies, it offered up to $1.04 per share better value to shareholders compared to Perpetual and up to $1.88 per share more than IOOF, with higher dividends, EQT stated.
“Our stand-alone estimates for future regulatory capital include a prudent buffer for the anticipated growth of the business through to June 2014,” Mr Burns said.
Qualified estimates released to the market by TRU were based on incomplete discussions and may be potentially misleading, he added.
EQT chairman Tony Killen said the EQT offer is: “The only offer that can currently be accepted by TRU shareholders.
“We have extended EQT’s offer to ensure that TRU shareholders have a real choice depending on the outcome of the [Australian Competition and Consumer Commission] investigation of Perpetual and any shareholder meetings to consider this or other proposals,” he said.
