TPG bids $468 million for Australia's EQT; stock logs best day in 41 years

U.S.-based brokerage TPG Global has bid for EQT Holdings EQT.AX valuing the Australian investment manager at A$657.8 million ($467.63 million), the latter said on Tuesday, sending its shares to their best day since August 1985.

EQT shares closed 21.6% higher after rising as much as 24% to a four-month high of A$21.46.

The approach underscores continuing appetite for established financial-services platforms in Australia, with TPG appearing willing to look beyond EQT's regulatory troubles and an ongoing business restructuring to gain access to its trustee and wealth-management operations.

"TPG's proposal sends a meaningful valuation signal for the company at a time when it is reshaping parts of its business," said Hebe Chen, market analyst at Vantage Markets.

"The size of the premium suggests TPG sees strategic value in EQT's established trustee platform despite the recent uncertainty around the group, including board support, regulatory approvals and TPG's own due diligence and valuation assessment," Chen said.

TPG's bid, at an indicative price of A$24.55 per share in cash, represents a nearly 42% premium to EQT's closing price on Monday. The U.S. firm has requested a period of exclusivity to conduct due diligence.

The takeover interest comes as EQT navigates a broader business overhaul and regulatory challenges. The company on Tuesday reiterated plans to exit the independent superannuation trusteeship business through its Equity Trustees Superannuation unit.

EQT is also fighting an Australian Securities and Investments Commission lawsuit alleging a unit did not obtain critical information about the now-defunct First Guardian Master Fund before approving member investments.

The company said it would provide details on the potential capital and funding implications of the exit when it reports annual results on August 20.