Shawn’s Trade Idea: Cancelled as stock opened below Stop following PPT’s rejection of EQT bid.
PPT is very much “in play” with below a summary of the EQT pursuit of the fund manager over the past 12 months:
- EQT enters (July 2026): EQT, through Windflower Pte, made an initial offer of $21.64/share, valuing PPT at around $2.45bn. The board rejected the approach as highly conditional and undervaluing the company.
- EQT raises its bid: A second offer of $22.07/share was rejected before EQT returned with $22.50/share (~$2.6bn) in late July. PPT again knocked it back but agreed to provide EQT with limited non-public information and continue discussions.
- Competition emerges: Janus Henderson reportedly entered the picture in August as a potential rival bidder while EQT continued due diligence.
- Business headwinds: Perpetual subsequently announced a goodwill impairment at TSW after a client flagged a ~US$4.6bn redemption, adding to concerns around ongoing fund outflows.
- EQT is now reportedly preparing a fourth and improved offer, with pressure on Perpetual’s board increasing as the underlying Asset Management business continues to face outflows.
EQT has already lifted its offer three times, from $21.64 to $22.50/share, without securing board support. With PPT now engaging with EQT, the Wealth Management sale progressing and shareholders facing continued fund outflows, the next bid we believe wil get things over the line.
- We are bullish towards PPT, believing a takeover will ultimately drive the stock up towards $22-23.
Trade Idea: Buy Perpetual Ltd (PPT) using a limit of $19.75, with stops at $18.60, around 5% risk.
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