The board of EQT has increased its acquisition offer from 37 to 39 shares for every 100 TRU shares, and also noted that the offer is free from all conditions.
“This increase is based on the significant long-term benefits that can be achieved for all shareholders from the logical and compelling combination of the two companies,” EQT chairman Tony Killen said.
“EQT’s offer is demonstrably superior for TRU shareholders seeking longer-term value, higher dividends and greater ownership.”
EQT has said that TRU shareholders “will own more and have greater influence with EQT” as they will comprise more than 62 per cent of the combined company compared with a lower level of ownership, ranging between 8.4 per cent and 13 per cent, under the Perpetual deal.
In addition, EQT said this will give TRU shareholders higher long-term value estimated at around $11 per TRU share compared with $9 with the Perpetual proposal.
The company has also noted that it remains “relatively undervalued” as it trades at a price-to-earnings multiple and therefore has greater potential for its shares to increase.
“Importantly, shares in EQT are less exposed to the risk of the current equity markets than Perpetual’s large funds management business,” Mr Killen said.
“EQT is a focused business that will provide all TRU shareholders with an ongoing investment in a pure-play trustee company.”
Shareholders will vote on the Perpetual proposal at a scheme meeting on Thursday November 28.
