In a letter sent to shareholders on Friday, The Trust Company (TTC) chairman Bruce Corlett said a merger of the two companies would create “significant value for shareholders of both companies” and will provide “substantial benefits for clients and staff of the combined group”.
Under the proposed scheme of arrangement, Perpetual would acquire 100 per cent of the shares of TTC at 0.1495 Perpetual Shares for each share held in TTC – or the cash equivalent of $6.57 per share (based on the closing price of Perpetual on Friday).
The Trust Company shareholders would also receive a 22 cent special dividend as part of the scheme of arrangement.
Shareholders will have the opportunity to vote on the proposal in a meeting likely to be held in July 2013, said Mr Corlett.
A rival offer made by Equity Trustees in February was rejected by TTC interim chief executive Shailendra Singh.
The Trust Company also released its final audited results last week, which confirmed the group’s $11.7 million net profit after tax for the financial year ended 28 February 2013 – down 7 per cent on the previous year.
A total dividend of 30 cents per share for financial year 2013 was also announced.
