EQT advances bid as shares rise for FY26

Perpetual has reached a non-binding agreement with private equity firm EQT for a potential acquisition while keeping the door open for competing offers.

The initial bid in early July valued the company at $2.5 billion, or $21.64 per share. EQT later raised its offer twice—first to $22.07 on July 15, then to $22.50 on July 27—bringing the total valuation to $2.65 billion.

Board rejects current bid, seeks better terms

Perpetual’s board turned down the latest proposal, stating it did not adequately serve shareholders. The company has since agreed to share limited non-public information with EQT on a non-exclusive basis to determine if a better deal can be negotiated.

During a discussion of Perpetual’s FY26 results, CEO Bernard Reilly confirmed ongoing talks with EQT but stressed the process was not exclusive. “At this point, we have one bid from one party, which is EQT,” he said. “There’s been speculation in the press, which I cannot comment on, but we are dealing with one party at the moment—and it is important to note that is on a non-exclusive basis.”

The board remains willing to engage constructively with third parties where doing so is in the best interest of shareholders. EQT’s bid also depends on Perpetual completing the sale of its wealth management division to Bain Capital, a transaction expected to finalize by the end of 2026.

Wealth management sale remains a strategic priority

The divestment to Bain Capital is progressing as planned. Perpetual expects to receive an upfront payment of $500 million at closing, subject to customer-related adjustments. The agreement includes potential additional payments of up to $100 million based on the performance of the advice and accounting divisions over the next two years.

Funds from the sale will be used to repay debt. Once finalized, Perpetual will concentrate on its asset management and corporate trust operations as part of a broader effort to simplify its business.

Reilly highlighted progress on regulatory approvals, including changes to Perpetual’s Australian Financial Services License from ASIC and clearance from the Australian Competition and Consumer Commission for Bain Capital.

FY26 results show mixed performance

Perpetual reported flat revenue for FY26, holding at $1.3 billion. Growth in corporate trust offset declines in asset and wealth management.

Asset management revenue dropped 3% to $880.5 million, mainly due to unfavorable foreign currency movements. Total assets under management stood at $224.4 billion at the end of June, a 1% decrease from the previous year. Outflows at international boutiques in the U.S. and Europe were partly balanced by stronger contributions from Barrow Hanley, Perpetual, and Pendal.

Net profit after tax rebounded to $88.9 million, a sharp improvement from a $58.2 million loss in FY25. The turnaround reflected stronger underlying earnings, a reduction in significant items despite the impairment recognised during the year, and the recognition of tax credits ahead of the completion of the sale of Wealth Management.

Discussing the results, Reilly noted the company had delivered against a backdrop of ongoing industry consolidation and evolving client preferences. “Against a backdrop of ongoing industry consolidation and evolving client preferences, we continued to focus on strengthening our product offering and operational efficiency,” it said.