Insignia Financial has extended the exclusivity period for private equity bidders Bain Capital and CC Capital Partners by four weeks as both firms continue to work on a proposed acquisition of the Australian wealth manager, according to a report by Reuters.
The ASX-listed company confirmed the extension on Thursday, stating that the move follows formal requests from both suitors seeking additional time to finalise their offers.
The extension adds momentum to the ongoing takeover discussions, which began in earnest in March when Insignia granted both Bain and CC Capital access to its books after they raised their competing bids to AUD3.34bn ($2.13bn).
Bain Capital is already well known in the Australian market following its high-profile acquisition of Virgin Australia out of administration. Meanwhile, CC Capital, based in New York, is looking to expand its global portfolio with a strategic move into Australia’s fast-growing wealth management space.
News of the exclusivity extension helped lift Insignia’s shares by 3.9% to AUD3.73 in early Thursday trading, outperforming the broader ASX 200 index, which edged up just 0.1%.
The process remains ongoing though, and no deal is guaranteed.
