Australia’s Perpetual ended talks with KKR about a potential asset sale to the U.S. buyout firm, and will instead look to hold onto its corporate trust unit.

Australia-based Perpetual has terminated its “Scheme of Arrangement”” with KKR, following the Independent Expert's Report which concluded that the scheme is not in the best interests of shareholders.

Perpetual said it will pursue the sale of its wealth management business after rejecting the latest offer from KKR & Co., as the Australian financial services firm attempts to lure new offers.

Australia's Perpetual Ltd has terminated talks with KKR for the A$2.2 billion ($1.4 billion) sale of its wealth management and corporate trust units and said it would pursue a sale of its wealth management business separately.

Negotiations on the financial details of the updated proposal are ongoing, with shareholder profits still to be finalised.