Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — Merger or Acquisition (November 2013)
17 slides from Eqt's merger presentation, Nov 14, 2013
Slide 1: Increased and unconditional offer to acquire Trust Company
For personal use only Increased and unconditional offer to acquire Trust Company 14 November 2013
Slide 2: Overview of EQT's offer for TRU
Overview of EQT’s offer for TRU For personal use only • EQT’s offer increased to 39 EQT shares for every 100 TRU share o Plus $0.22 special dividend • EQT’s offer declared unconditional o All required approvals have been received • Creation of a larger and diversified company with an equity market c
Slide 3: Combination of EQT and TRU
For personal use only Combination of EQT and TRU
Slide 4: EQT + TRU = a value adding combination
EQT + TRU = a value adding combination For personal use only Creation of a leading Australasian private and corporate trustee services provider – fulfilling a long-standing corporate opportunity for consolidation and efficiency gains. • Up to $15m cost synergies p.a. Substantial synergies (pre-tax)
Slide 5: Combined TRU + EQT group
Combined TRU + EQT group For personal use only Clients and employees will benefit from being associated with a larger, more diversified organisation with deeper resources, broader scope and a wider range of high-quality services. Stronger & Equity Trustees Trust Company Diversified Group $180m $286m
Slide 6: EQT will become a much larger company
EQT will become a much larger company For personal use only EQT will benefit from increased scale and liquidity – leading to greater investor interest. 2 59 All Ordinaries Index ranking 105 139 ~233 330 Note: Estimated ranking on S&P ASX All Ordinaries 6 329 Index, based on pro-forma market capitali
Slide 7: Up to $15m p.a. in synergies
Up to $15m p.a. in synergies For personal use only EQT is confident that up to $15m pre-tax p.a. of cost synergies are achievable. • EQT has undertaken a review of synergy opportunities and developed an implementation plan o Integration plan for first 3 months post merger to lay strong foundation o
Slide 8: Other considerations
Other considerations For personal use only EQT’s objective to retain the best people from both business and establish a culture of ‘One’. • Share common values throughout the group o One Vision, One Strategy o EQT’s history will allow the continuation of TRU’s values and heritage, which may be lost
Slide 9: Key dates
Key dates For personal use only Date Milestone 13 November EQT declared offer unconditional 15 November EQT expects to lodge Fourth Supplementary Bidder’s Statement 26 November Last day for receipt of proxies for TRU Scheme meeting 28 November TRU Scheme meeting 29 November Current closing date for
Slide 10: Why EQT's bid is superior to Perpetual
For personal use only Why EQT’s bid is superior to Perpetual
Slide 11: EQT's offer is superior to Perpetual's
EQT’s offer is superior to Perpetual’s For personal use only Assessment criteria EQT offer PPT proposal 1. TRU shareholder ownership 62.2% 8.4% 2. TRU’s share of synergies $9.3m p.a. $1.3m p.a. 3. Influence of TRU shareholders Up to 2 directors No direct influence 4. Business strategy
Slide 12: EQT provides greater long term value
EQT’s provides greater long term value For personal use only • TRU shareholders receive higher long-term value from the EQT offer • Synergies for EQT and Perpetual are similar and the higher level of ownership for TRU shareholders means they share in more of the potential upside with EQT $12.00 $10.
Slide 13: EQT's offer may lead to higher dividends
EQT’s offer may lead to higher dividends For personal use only • After synergies, equivalent dividends are estimated to be, on average, 14% higher under EQT’s offer over the next 3 years $0.60 $0.50 $0.40 $0.30 $0.57 $0.52 $0.51 $0.46 $0.20 $0.41 $0.36 $0.35 $0.10 $0.24 $0.00 2013 2014 2015 2016 PPT
Slide 14: Perpetual's scrip is highly priced
Perpetual’s scrip is highly priced… For personal use only • Perpetual’s share price is trading above of 12 out of 14 broker price targets • Perpetual’s share price is 9% above consensus mean target price of $41.91 $50.00 9% $45.00 above consensus $40.00 $35.00 $30.00 $25.00 Nov-12 Dec-12 Jan-13 Feb-
Slide 15: EQT's scrip is relatively undervalued
…EQT’s scrip is relatively undervalued For personal use only • EQT PE multiple is comparable with its peers • EQT considers that there is potential for its shares to increase in value as a result of acquiring TRU, due to the cost and revenue synergies that will become available to it and the likely
Slide 16: EQT's benefits are superior to Perpetual
EQT’s benefits are superior to Perpetual For personal use only 1. EQT’s offer provides higher long-term value than Perpetual. 2. TRU shareholders retain higher ownership and influence with EQT. 3. EQT offers a higher dividend yield than Perpetual. 4. EQT remains a ‘pure play’ trustee company, not a
Slide 17: Disclaimer
Disclaimer For personal use only Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975. This document was prepared by Equity Trustees Limited and is only provided for information purposes. It is not intended to take the place of professional advice and you shoul
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