Insignia Financial, Australia’s third-largest superannuation player, has attracted a third suitor, with Brookfield Asset Management entering the fray to acquire the money manager with an AUD3bn ($1.9bn) offer, according to a report by Reuters.
The report cites Insignia as confirming Brookfield’s bid, which matches offers already made by Bain Capital and CC Capital.
Shares of Insignia surged 7.6% to a three-year high of AUD4.65, slightly exceeding the AUD4.60 per share offered by all three contenders.
Brookfield, headquartered in New York and listed in Toronto, has also provided Insignia shareholders with the option to take equity in its unlisted bid vehicle, adding a layer of flexibility to its proposal.
Insignia, previously known as IOOF, manages approximately AUD327bn in client assets, making it a prime target in Australia’s booming AUD4.1tn superannuation system. The company offers both funds management and financial advisory services, positioning it as a key player in the wealth management sector.
The interest reflects growing investor appetite for Australian wealth managers, driven by the country’s robust pension system.
The bidding war began in December when Bain Capital made an initial offer for Insignia, valuing the company at AUD2.2bn. After Insignia rejected Bain’s bid, CC Capital entered with its own proposal, sparking a competitive race among the three suitors.
Insignia has granted all three bidders limited access to its financial books as part of the evaluation process.
