Shares of Insignia Financial surged to a three-year high on Thursday after US-based private investment giant Bain Capital matched a revised takeover offer of AUD3.07bn ($1.92bn) from rival buyout firm CC Capital Partners, according to a report by Reuters.
Bain’s latest proposal values the shares of the 178-year-old Australian wealth manager at AUD4.43 each, a 3.8% premium over their previous closing price and a 7% increase from the company’s initial AUD4.30 per share bid, which the Insignia board rejected in December as insufficient.
In response to the intensified bidding war, Insignia’s shares climbed as much as 2.7% in early trading to AUD4.55, their highest level since October 2021, though still slightly below Bain’s offer price.
The competition escalated earlier this month when CC Capital entered the fray with its own offer, seeking to capitalise on Australia’s lucrative AUD4.1tn superannuation system.
Insignia has granted both Bain Capital and CC Capital limited access to select non-public information on a non-exclusive basis, however, the company has also cautioned that granting due diligence does not guarantee a binding or board-approved offer.
“The provision of limited due diligence does not guarantee that the Bain second revised indicative proposal will result in a binding offer or one that is capable of being recommended by the Board of Insignia Financial,” the company stated.
Insignia Financial’s appeal stems from its robust growth, with funds under management and administration rising by AUD7.2bn to reach AUD326.8bn as of 31 December.
