In a statement on the Australian Securities Exchange (ASX) , TRU confirmed that it would still be unanimously recommending Perpetual’s proposal for acquisition of the company, despite a revised offer by EQT last week.
“The board of TRU has considered the revised EQT offer including obtaining an updated opinion from the independent expert Lonergan Edwards,” TRU said in a statement. “The directors of TRU have unanimously recommended that shareholders vote in favour of the Perpetual proposal, in the absence of a superior proposal.”
“TRU advises shareholders to reject the revised EQT offer.”
EQT revised its takeover bid on November 13 from 37 to 39 EQT shares for every 100 TRU shares.TRU noted that the Perpetual offer continues to represent a “significant” premium over the EQT offer, valued at $8.37 per share against $7.69 in the revised EQT offer.
In addition, Lonergan Edwards noted that “in our view, the higher EQT listed market price post 18 September 2013 is likely to reflect speculation of a future takeover offer for EQT by IOOF if the scheme proceeds.”
TRU also warned that as the EQT bid is unconditional and no longer subject to a 90 per cent minimum acceptance condition, shareholders who accept the offer will “miss out on participating in the Perpetual proposal, if the Perpetual proposal is approved by shareholders”.
Shareholders will vote on the Perpetual proposal at a scheme meeting on Thursday November 28.
