Equity Trustees (EQT) has extended the offer period for its takeover bid to Trust Company shareholders, saying the bid has been deemed “reasonable” by an “independent expert”.
The Trust Company on Friday advised all shareholders to reject any approaches from EQT in regards to the bid, which it said was opportunistic and undervalued the shares.
EQT yesterday extended the offer period to 5 June 2013, cautioning Trust Company shareholders that the value of their shares would be likely to fall if the takeover was rejected.
“If the merging of our two companies is not successful and no alternative offer emerges, the value of your shares in TRU is expected to fall significantly,” the statement to the Australian Securities Exchange read.
“In stark contrast, our returns to shareholders have been 8.7 per cent per year higher than those from TRU over the past 10 years.”
EQT said it expected “significant” cost savings to arise from a merger of the two businesses of up to $8 million per year.
TRU shareholders may also be eligible to receive EQT dividend payments if the offer is successful prior to EQT’s dividend date, the company stated.
EQT added that an independent expert commissioned by The Trust Company had deemed the offer to be reasonable.
“This expert said all shareholders ‘are likely to be able to realise a significantly greater value for their shares if the businesses are combined’,” the statement read.
