Under the terms of the IOOF proposal, The Trust Company (TRU) shareholders would receive a share consideration of 0.74 IOOF shares per TRU share, as well as a special dividend of 22 cents per Trust share.
The guaranteed minimum cash consideration will be $6.03, or the cash equivalent value of the IOOF share consideration - whichever is higher. The current value is $6.56 per share.
The total share consideration of $6.25 or better (That is, a guaranteed minimum of $6.03 per share plus a 22 cents dividend) is higher than the Perpetual offer of $6.06 per share, according to IOOF.
The IOOF proposal is capable of immediate acceptance by Trust and remains open for acceptance until 9:00 am on Saturday 7 September 2013.
The Perpetual/TRU merger is currently under consideration by the Australian Competition and Consumer Commission (ACCC).
In a statement on the Australian Securities Exchange (ASX), IOOF argued that its proposal is superior to that of Perpetual because it offers a higher price per TRU share; it's not subject to ACCC approval; it allows TRU to pay an interim dividend of up to 17 cents per share; and it provides a “substantially higher” total available cash pool of $100 million compared with $60 million under the Perpetual offer.
