Perpetual Shares Down After It Said It Would Buy The Trust Company

Getty/ John Moore

Perpetual will snap up all the shares in The Trust Company through a scheme of arrangement, saying the two are a good fit.

Shareholders will get 0.1495 Perpetual shares from each of their The Trust Company shares, which works out to be around $6.

There is also going to be a special dividend of 22 cents for The Trust Company shareholders, which Perpetual expects to be fully franked.

Due diligence prior to the arrangement uncovered “meaningful synergies,” Perpetual said in a statement.

Perpetual was down 16 cents, or 0.39 per cent to $41.11 at 11:24 am today, after the deal was announced earlier.

After drastic restructuring last year, which included director pay cuts and redundancies, as well as the sale of a number of divisions, Perpetual’s share price has doubled since June 2012, when it touched a low of $21.11.

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