Insignia's shares peak to a 3-year high
Due diligence to Bain, CC Capital granted
Bain matches CC Capitals' A$4.43 apiece offer
Updates with share moves in paragraphs 1,5
By Roushni Nair
Jan 23 (Reuters) - Insignia Financial's IFL.AX shares hit a three-year high on Thursday, driven by a revised takeover offer of A$3.07 billion ($1.92 billion) from U.S.-based Bain Capital, matching the bid of rival CC Capital Partners and fuelling a heated bidding war.
Insignia Financial had previously rebuffed an approach from private equity firm Bain Capital in late December, deeming the offer insufficient for its shareholders.
The 178-year-old Australian money manager's initial reluctance to engage with Bain Capital sparked a bidding war, with U.S.-based investment manager CC Capital Partners subsequently entering the fray.
The revised proposal from Bain Capital values Insignia Financial's shares at a 3.8% premium over their last closing price of A$4.43 each. This bid is a notable improvement over Bain's initial non-binding indicative offer of A$4.30 per share, representing a 7% increase.
In early trading, shares rose by up to 2.7% to A$4.55 per share, their highest since October 2021, albeit still below the A$4.43 per share cash offer.
Earlier this month, CC Capital Partners had upped the ante with a rival bid, seeking to gain a foothold in Australia's lucrative A$4.1 trillion superannuation system, a prize that has driven the intense bidding competition between the two suitors.
CC Capital did not immediately respond to a request for comment.
In a bid to possibly enhance their proposals, Insignia Financial has granted Bain Capital a limited duration of access to select non-public information on a non-exclusive basis. A similar offer was made to CC Capital Partners earlier this week.
"The provision of limited due diligence does not guarantee that the Bain second revised indicative proposal will result in a binding offer or one that is capable of being recommended by the Board of Insignia Financial," the company clarified.
Insignia Financial's funds under management and administration surged by A$7.2 billion to A$326.8 billion as of Dec. 31, underscoring the strong investor appetite for Australian-listed wealth managers with growing asset bases.
($1 = 1.5949 Australian dollars)
(Reporting by Roushni Nair in Bengaluru; Editing by Alan Barona)
((Roushni.Nair@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.