Perpetual (ASX:PPT) terminated its scheme of arrangement with Kohlberg Kravis Roberts (KKR) after an independent expert's report concluded the deal was not in shareholders' best interests, according to a Monday filing with the Australian bourse.

The board has withdrawn its recommendation, and the scheme implementation deed has been terminated without a break fee. However, KKR has asserted that a break fee is owed, and the company has rejected these claims, the filing said.

The company will focus on retaining ownership of its businesses and advancing a strategic separation, including a potential sale of its wealth management division to strengthen its capital position and support growth in corporate trust and asset management, the filing added.

Perpetual also confirmed that Gregory Cooper will assume the role of chairman, following the company's fiscal first-half results.

Shares of the company fell past 2% in recent Monday trade.