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The bidding war for wealth management group Insignia Financial (ASX: IFL) has heated up after the company revealed it has received a revised $3.07 billion takeover offer from private equity player CC Capital, surpassing a previous bid that was matched by Bain Capital.
The new offer of $4.60 per share reflects a seven per cent premium from the initial $4.30 per share deal that was put forward two weeks ago by CC Capital. Five days ago, Boston-based firm Bain Capital matched CC Capital’s takeover bid, having initially been shot down by the board when it offered $4 per share in late 2024.
If the deal goes through, it would be the first major investment into Australia from New York-based CC Capital, giving the player access to a $4 trillion superannuation system and one of the world’s largest private pension markets. The revised offer represents a 10.6 per cent premium to Insignia’s last closing price of $4.16 per share.
In an announcement to shareholders, the board says it is considering the revised $3.07 billion offer with its financial and legal advisors.
“There is no certainty that the CC Capital revised indicative proposal will result in a binding offer or that any transaction will eventuate,” the company said.
Founded in 1846 and based in Melbourne, Insignia offers superannuation, financial advice and assest management services. The company owns the MLC brand and has benefitted from a string of acquisitions in recent years that has helped deliver an underlying net profit after tax of $217 million in FY24, up 13.6 per cent for the year on a continuing operations basis.
The group increased average funds under management and administration during the year by 3 per cent to $301 billion.
The $4.30 per share offers from CC Capital and Bain Capital were at a significant premium to Insignia Financials’ recent low of $3.04 per share recorded on 27 November and well up on the 52-week low of $2.04.
The proposal from CC Capital is subject to several conditions, including an exclusive due diligence period and the execution of a binding scheme implementation agreement. Any deal is still subject to board approval as well as green lights from the Foreign Investment Review Board and the Australian Prudential Regulation Authority.
While there was speculation thata three-way battle would take place for Insignia following a report by The Australian, the company dispelled rumours a week ago when it announced it had not received an offer from US-Canadian private equity group Brookfield.
Shares in IFL are up 6.6 per cent to $4.44 each at 12:31pm AEST.
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