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.

Follow Business Insider Australia on Facebook and Twitter

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.