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Highlights:
- Revised Offer from CC Capital: U.S. firm proposes AU$4.60 per share, offering a 7% premium to its previous bid and Bain's offer.
- Bidding War Escalates: Bain Capital had previously matched CC Capital's initial offer at AU$2.87 billion, offering AU$4.30 per share.
- Premium Valuation: CC Capital's revised offer is 10.6% higher than Insignia’s last closing price.
Insignia Financial (ASX:IFL) has announced that it has received a revised acquisition offer from U.S.-based CC Capital Partners, valuing the company at AU$3.07 billion ($1.91 billion). The offer comes amid a growing bidding war for the 178-year-old money manager, which has seen private equity firm Bain Capital enter the fray.
Details of the Revised Offer
On Friday, Insignia Financial confirmed the receipt of a revised offer from CC Capital Partners to acquire the company for AU$3.07 billion. Under the terms of the new bid, Insignia shareholders could receive AU$4.60 cash per share as part of a scheme of arrangement. This offer represents a 7% premium compared to CC Capital’s original proposal and Bain Capital's revised bid of AU$4.30 per share.
The offer also tops Bain’s bid and provides a 10.6% premium to Insignia’s last trading price.
Bidding War Intensifies
The acquisition process for the 178-year-old money manager began escalating earlier this month, when Bain Capital matched CC Capital’s initial offer of AU$2.87 billion. Bain’s offer of AU$4.30 per share was positioned as a competitive counteroffer to CC Capital’s initial bid.
With CC Capital now upping the ante, the battle for control of Insignia Financial is intensifying, with shareholders set to benefit from the increasing bids.
Board Review and Considerations
At present, Insignia Financial's board is reviewing CC Capital's new offer. The money manager has yet to make a final decision on the revised proposal, and further details are expected in the coming weeks.
