Based on the terms of the agreement, for each share of The Trust Company, its shareholders will receive 0.1495 Perpetual shares and a fully franked special dividend of $0.22 per share.
Perpetual CEO Geoff Lloyd said the acquisition will help the company to accelerate its vision of becoming Australia’s largest independent wealth manager of choice.
"We are committed to continuing to provide outstanding service to all clients and bringing the businesses together will allow us to deliver additional product and service benefits to clients, and opportunities for staff," Lloyd added.
The transaction is part of Perpetual’s Transformation 2015 corporate vision and strategy, which will expedite growth, delivers significant strategic benefits for the acquirer.
The acquisition is also significantly complementary with each of Perpetual’s three businesses, delivering economies of scale in Perpetual Private and Perpetual Investments and building capability in Corporate Trust.
Further scale for Perpetual Private, with fund under administration (FUA), is expected to rise by 53% to $13.4bn as a result of the acquisition.
Goldman Sachs is acting as financial adviser, and Herbert Smith Freehills as legal adviser to Perpetual.
Established in 1886, Perpetual operates an ASX listed investment, financial advice and trustee group, which caters an array of managed investment, wealth management, superannuation and trustee services for individuals and institutional investors.
