Perpetual reaffirms divestment priorities at AGM
During its Sydney annual general meeting, Perpetual emphasized its ongoing commitment to divestments, mergers and acquisitions, and cost-cutting measures. The chairman highlighted EQT’s acquisition bid as a key discussion point throughout his address.
Earlier this year, EQT submitted a full acquisition bid for Perpetual at $22.50 per share through its subsidiary Windflower, but Perpetual turned down the offer on 21 September.
The refusal came after EQT was granted due diligence access, provided with confidential data, and engaged in prolonged negotiations. During the AGM, Perpetual emphasized that these interactions have not shifted its strategic direction.
“In assessing each proposal put forward by EQT, the board was conscious of its fiduciary obligations and statutory duties to act in good faith in the best interests of shareholders and for a proper purpose,” said chair Gregory Cooper.
“The board stands behind that decision. I want to be clear that our decision to engage with EQT and the subsequent conclusion of that process does not alter our strategic priorities. We remain focused on the wealth management transaction and delivering sustainable long-term value for shareholders.”
According to Cooper, Perpetual remains committed to its restructuring efforts, encompassing cost reduction, client outreach, and product innovation. A key objective also involves divesting its wealth management segment.
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In March 2026, the company finalized an agreement to transfer its wealth management arm to Bain Capital for an initial payment of $500 million. The deal is projected to close by year-end, after which Perpetual will operate solely in asset management and corporate trust services.
They have obtained the required AFSL variations from ASIC, and Bain Capital has received ACCC approval so the transaction remains on track to complete before the end of the 2026 calendar year. Incremental performance related to the advice business could deliver additional consideration of up to $50 million.
Perpetual noted that cost reductions have already met its FY27 objectives, driven by exceeding FY26 targets through process optimization and elimination of redundancies. It anticipates cumulative annual savings of up to $80 million by the conclusion of FY27.
Cooper said: “In asset management, our near-term priorities are to retain and grow our strong position in the Australian market, improve the performance and financial contribution of the J O Hambro boutique, and expand our product offerings in the United States and Australia.”
For FY26, the wealth management unit’s pre-tax earnings fell 1% to $44 million, reflecting investments made to ready the business for spin-off.
