In a letter to shareholders posted on the Australian Securities Exchange (ASX), EQT said it will extend the closing date of its TRU offer from 31 July to 30 September, after the Australian Competition and Consumer Commission (ACCC) extended its decision on Perpetual’s scheme implementation agreement (SIA) with TRU.
The ACCC are investigating Perpetual’s offer, over concerns it will impact competition in the sector.
“On 16 May, the ACCC announced it was undertaking a review of Perpetual’s proposed acquisition of TRU,” EQT said in a statement to the ASX.
“After suspending the original timeline, the proposed date for announcement of ACCC’s decision is now 1 August, which may be a final decision or the release of a Statement of Issues.
“To allow for the decision from the ACCC as well as TRU to review our improved offer, EQT has extended the closing date of our offer to 30 September 2013.”
EQT also said the value in its estimated synergies with TRU seem “achievable”, following two review meetings with Ernst & Young.
“These meetings were held on 2 July and 10 July,” EQT said.
“We are encouraged by this interaction and remain confident the stated level of synergies is readily achievable by our management team, who have the expertise to deliver the benefit for all shareholders.”
In its latest offer, EQT anticipated $11 million in pre-tax synergies, with the possibility of that increasing to $15 million per year, despite concerns raised by TRU over how that number was determined.
In a response to EQT’s extended timeframe, TRU said in a statement on the ASX that it would also extend the date for giving notice of defeating conditions to 20 September.
