Melbourne-based wealth manager EQT Holdings surged nearly 10% on Friday after private equity firm BGH Capital submitted an unsolicited, non-binding takeover proposal valuing the company at A$663 million.
The proposal values EQT at A$24.75 per share in cash, a 22.4% premium to the prior session's close and 0.8% above a rival indicative offer from U.S.-based TPG Global at A$24.55 per share. EQT's shares reached an intraday high of A$23.10, up from Thursday's close of A$22.18, though still well below its 52-week peak of A$34.50 and a low of A$14.70 earlier this year.
BGH Capital's bid follows the release of EQT's FY26 annual results the previous day, which the company described as a catalyst for strategic reassessment. EQT has faced operational challenges, including civil proceedings initiated by the Australian Securities and Investments Commission (ASIC) related to the collapse of the First Guardian Master Fund.
In response to these pressures, EQT announced plans to exit its independent superannuation trusteeship business, a move that opened the door to opportunistic acquisition interest from private equity firms. The strategic shift aligns with broader industry trends favoring consolidation in Australia's wealth management sector.
The broader Australian equity market provided no tailwind, with the S&P/ASX 200 trading modestly lower on the session. EQT's surge reflects investor confidence in the premium offered by BGH Capital's proposal amid ongoing regulatory and operational headwinds.
