Steadfast Group has agreed to a AUD7.7bn ($5.5bn) takeover by a consortium backed by KKR, in one of the latest major Australian public-to-private transactions targeting the country’s financial services sector, according to report by Reuters.
Under the proposed transaction, speciality insurance distributor Amwins Group will acquire Steadfast’s underwriting agency operations, while Dragoneer Investment Group will take control of the company’s broking business.
Steadfast shareholders will receive AUD6 per share in cash, representing a premium of almost 52% to the company’s closing share price on 9 June, the final trading session before the consortium disclosed its initial non-binding proposal.
Steadfast’s board has unanimously recommended the transaction, subject to an independent expert finding that the deal is in shareholders’ best interests and provided no superior offer emerges.
The company expects the scheme to be implemented in December.
The proposed buyout comes after a period of significant volatility for Steadfast. Chief executive Robert Kelly was temporarily stood down following an external investigation into a workplace complaint, sending the company’s shares to their lowest level in almost three years after the issue emerged in October.
The stock has since recovered strongly, rising more than 40% since 9 June.
