Shares of Australia’s Insignia Financial surged to a three-year high on Monday as the bidding war intensified, with Bain Capital increasing its offer to AUD 2.87bn ($1.76bn), aligning with the rival bid from CC Capital, according to a report by Reuters.
Under Bain’s revised proposal, Insignia shareholders would receive AUD4.30 per share – a 7.5% increase over Bain’s earlier offer and a 4.4% premium to Insignia’s last closing price of AUD4.12.
Shares of the 178-year-old wealth management firm, which provides superannuation, financial advice, and asset management services, climbed 3.2% to AUD4.25, their highest level since 28 October 2021.
The bidding war began after US-based investment manager CC Capital Partners offered to acquire Insignia for AUD2.87bn last week. This came shortly after Insignia rejected Bain Capital’s initial offer, stating it undervalued the company.
“I see the bidding war is in early days and we will likely see CC Capital respond to Bain’s increased bid in the near future … It’s going to be a very tight race,” said Grady Wulff, Market Analyst at online share trade platform Bell Direct.
Bain’s revised bid marks the first major takeover battle of 2025 for an Australian company. This follows a busy 2024 for Australian dealmakers, with M&A activity reaching $113.4bn – a 15% increase compared to 2023, according to LSEG data.
In addition to the increased bid, Bain’s updated proposal includes an option for Insignia shareholders to receive part of the purchase price as shares in the new entity. The offer highlights robust investor interest in Australian wealth managers, whose asset bases have seen significant growth.
The acquisition would grant the buyer access to Australia’s AUD4.1tn superannuation system, one of the world’s largest private pension markets.
