Australia's EQT Holdings jumps on $472 million rival bid from BGH Capital (updated)
UPDATE 1-Australia's EQT Holdings jumps on $472 million rival bid from BGH Capital Recasts, adds analyst comments in paragraphs 7 and 8
By Sherin Sunny and Anjali Singh
Aug 21 (Reuters) - Australian investment manager EQT Holdings EQT.AX said on Friday it had received an A$663.1 million ($471.93 million) proposal from BGH Capital, topping a TPG Global offer made earlier this week and sending its shares to a six-month high.
The competing bid is the latest sign of a broader private-capital push into Australia's financial services sector this year as dealmakers increasingly target trustee, wealth and insurance platforms.
The takeover bids also come as EQT navigates a broader business overhaul and regulatory troubles.
Under its proposal, private investment firm BGH offered to acquire all EQT shares for A$24.75 in cash, less any dividends declared or paid.
The offer represents a 22.4% premium to EQT's last close and is slightly above U.S.-based brokerage TPG's A$657.8 million, or A$24.55 per share, bid.
BGH did not seek exclusivity to conduct due diligence, EQT said.
"BGH not asking for exclusivity is the tell: it's positioning itself as the lower-friction counterparty and signalling it's happy to compete in an open process," said David Tuckwell, chief investment officer at ETF Shares.
"That keeps the board's options alive and denies TPG a cheap, uncontested run at the asset."
Shares of EQT Holdings closed 9.3% higher at A$22.1 after hitting their loftiest level since February 19.
Last month, Swedish private equity firm EQT AB EQTAB.ST, made an A$2.55 billion offer for Perpetual PPT.AX, though the Australian asset manager rejected it, saying it was not in the best interests of shareholders.
Earlier this week, EQT Holdings reaffirmed its plan to exit the independent superannuation trusteeship business through its Equity Trustees Superannuation unit.
It is also defending a corporate regulator lawsuit alleging a unit of it failed to obtain critical information about the now-defunct First Guardian Master Fund before approving member investments.
($1 = 1.4051 Australian dollars)
(Reporting by Sherin Sunny & Anjali Singh in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)