ACCC clears Perpetual takeover of Trust Co

The regulatory clearance means Trust Co shareholders will probably vote in favour of a Perpetual acquisition next month.

Perpetual Ltd has received informal clearance from the Australian Competition and Consumer Commission to acquire Trust Co, clearing the way for the takeover that has been endorsed by Trust Co’s board.

“The directors of the Trust Co believe that a combination with Perpetual not only creates significant value for shareholders of both companies but will also provide substantial benefits for clients of the combined group,” the Trust Co said in an ASX statement.

Trust Co. shareholders will vote on whether to approve the Perpetual offer on November 28.

Perpetual’s takeover of Trust Co is based on it selling Trust Co's 13 per cent stake in Equity Trustees Ltd., which had initially bid for Trust Co on February 21. Perpetual’s stake in Equity Trustees will be sold to IOOF Holdings Ltd, another failed bidder for Trust Co.

The value of the Equity Trustees offer in February for Trust Co was $4.50 a share. Perpetual’s bid, at the close of trading today, was $7.90 a share, plus a 22 cents fully franked special dividend that will be paid by the Trust Co.

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