Australia’s Insignia Financial has turned down Bain Capital’s AUD$2.67bn ($1.69bn) takeover offer, stating that the bid fails to reflect fair value for its shareholders, and blocking Bain’s Asia expansion, according to a report by Reuters.
Earlier this month, Bain proposed AUD4 per share for the 178-year-old wealth management firm, sparking renewed investor interest in Australia-based wealth managers.
However, Insignia, which reportedly has already faced opposition from activist investor Tanarra Capital, is sticking to its plan to regain shareholder confidence. Tanarra expressed concerns, calling Bain’s offer “highly opportunistic” and urging the management team to stay focused on its ongoing business improvement initiatives.
Insignia’s shares are currently trading at AUD3.59, down 0.3% and still below Bain’s bid after falling 2.8% earlier in the session.
Despite the refusal, sources say a bid above AUD4.20 per share could potentially get Insignia Financial talking.
Bain has been active in Asia, recently raising its offer for Japan’s Fuji Soft amidst a bidding war with KKR. Bain also closed its fifth pan-Asian private equity fund at AUD7.1bn in November and acquired Australian aged care provider Estia for AUD838m in August.
