EQT Holdings Limited (ASX:EQT), the parent of Equity Trustees, is not offering a Dividend Reinvestment Plan (DRP) for its latest dividend. The company's FY26 results state that its DRP is suspended, so the fully franked final dividend of 20 cents per share will be paid in cash.

The final dividend forms part of total FY26 dividends of 76 cents per share. The board said the payout reflects a balance between Shareholder distributions and maintaining financial flexibility while the Superannuation Trustee Services (STS) exit process continues.

Latest developments

EQT is the subject of Takeover interest from TPG Global and BGH Capital. BGH submitted an unsolicited, indicative and non-binding proposal to acquire all EQT shares for $24.75 cash per share, subject to conditions including due diligence, investment committee approval, shareholder approval and regulatory clearances. TPG has also made an indicative proposal, with both parties indicating that their respective offer prices would not be reduced by the FY26 final dividend.

The EQT board has said the offer prices proposed by TPG and BGH do not adequately reflect the value of Equity Trustees. The board has nevertheless offered both parties access to certain non-public information, subject to confidentiality deeds containing standstill provisions. EQT has stated that there is no certainty that either proposal will result in a binding offer or that any transaction will eventuate.

Key numbers

EQT reported FY26 results for the year ended 30 June 2026. Revenue from continuing operations rose 9.4% to $167.0 million, while funds under management, administration and supervision (FUMAS) for continuing operations increased 15.1% to $191.9 billion. Statutory net profit after tax (NPAT) was $26.4 million, reflecting a $7.5 million loss from discontinued STS operations, including a $13.1 million Impairment charge.

Continuing operations NPAT increased 32.7% to $33.9 million, while continuing operations net profit before tax increased 35.8% to $49.9 million. The final dividend is 20 cents per share and fully franked, taking total FY26 dividends to 76 cents per share.

About the company

EQT Holdings is a financial services group operating under the Equity Trustees brand. It provides trustee, executor, estate planning, philanthropic and asset management services, as well as Responsible Entity and custody services for external fund managers. Mick O'Brien is managing director and Carol Schwartz is chair of the board.

In FY26, EQT decided to exit its Superannuation Trustee Services (STS) business, which is now reported as a discontinued operation. The company has continued to work through regulatory and legal matters associated with the Business while focusing management attention on its Trustee and Wealth Services and Corporate Trustee Services operations.

How the DRP works

EQT has DRP rules, but the plan is currently suspended. This means no shares will be issued or allocated in place of the FY26 final dividend, which will instead be paid in cash.

When the DRP operates, participating shareholders can receive shares rather than cash, subject to the pricing methodology and other terms determined by the company. Investors wanting to reinvest EQT dividends while the DRP is suspended would need to purchase shares separately. Any decision to reinstate the DRP, together with its applicable terms, would be communicated through a future dividend announcement.

Why it matters for income investors

The final dividend of 20 cents is below the 56 cent interim dividend, taking total FY26 dividends to 76 cents per share. The board said the final dividend balances shareholder returns with the need to maintain financial flexibility during the STS exit process. EQT has also indicated that it will continue to manage Capital conservatively during this period.

With the DRP suspended, EQT is not issuing additional shares under the plan for the final dividend. Shareholders will instead receive the dividend in cash, leaving any decision to reinvest separate from the company's dividend process.

The takeover proposals also add another consideration for shareholders. Both TPG and BGH have indicated that their respective indicative offer prices would not be reduced by the FY26 final dividend, although neither proposal is currently a binding transaction.

What comes next

The takeover process remains a key near-term development. EQT will continue engaging with TPG and BGH, while any improved proposal would remain subject to the relevant transaction conditions and board consideration.

The STS exit also remains in progress. EQT expects costs associated with the Shield and First Guardian matters to continue through FY27 and will continue to manage capital during the transition, including regulatory capital requirements and other funding considerations.

Future dividend levels and any decision to reinstate the DRP will be determined by the board.

Risks and context

A dividend payment does not guarantee future distributions, and EQT's FY26 results highlight the financial effects associated with the STS exit. The company reported a $7.5 million loss from discontinued STS operations, while net costs associated with the Shield and First Guardian matters totalled $3.9 million during FY26.

The takeover proposals also remain uncertain because they are indicative, non-binding and conditional. If a transaction does not eventuate, EQT will continue operating as an independent listed company while progressing its STS exit and focusing on its continuing businesses.

Regulatory requirements, legal and advisory costs, capital requirements and market-linked revenue remain relevant factors for the company's financial position and future dividend capacity. If the DRP is reinstated in the future, shareholders would also need to consider the tax treatment and separate cost base associated with any shares received through reinvestment.

Conclusion

EQT Holdings (ASX: EQT) has suspended its dividend reinvestment plan for the fully franked 20 cent FY26 final dividend, meaning shareholders will receive the payment in cash. The decision comes as EQT progresses the STS exit while considering non-binding takeover proposals and managing regulatory, legal and capital requirements.