In a statement to the Australian Securities Exchange (ASX) TRU said it was continuing its support for the Scheme Implementation Agreement (SIA) that it entered with Perpetual earlier this month.
“The directors of TRU continue to unanimously recommend the Perpetual proposal and, pursuant to its obligations under the SIA, The Trust Company does not intend to offer due diligence access to EQT,” TRU said.
On Wednesday, EQT made a revised proposal conditional on due diligence, including TRU providing information equivalent to that provided to other partners so as to ensure “a level playing field for EQT to consider proceeding with the revised proposal”.
TRU said that the Perpetual proposal is more certain for its shareholders, as a large proportion of the value of EQT’s revised proposal is based on future synergies.
The company said its shareholders were exposed to a greater loss of value in the EQT merger than with the Perpetual proposal if those synergies are not achieved.
Speaking with InvestorDaily, EQT managing director Robin Burns said EQT had based its original offer on the assumption of up to $8 million per annum in synergies, but access to due diligence could see this figure change.
“Perpetual have had the benefit of due diligence in coming up with that figure, so we’re simply asking for similar access to data and as a result of that, we might be able to anticipate a higher level of synergies,” he said.
TRU noted that the Perpetual proposal represents a 4.6 per cent higher value per share than the revised EQT proposal.
The company also said the limited cash alternative in the Perpetual proposal was of being to shareholders as it meant it was a more liquid stock than EQT.
EQT had raised the possibility of including a cash component in its revised proposal but TRU said it “has provided no details as to likelihood, potential quantum, or funding of this cash component”.
“Accordingly, it will be easier for shareholders in TRU to realise value for their shares in TRU under the Perpetual proposal,” it added.
TRU also announced on Friday that it has paid shareholders the final dividend for the 2013 financial year.
