Bain Capital re-entered the bidding war for Insignia Financial, matching CC Capital Partners’ revised offer of $1.92bn (AUD3.07bn).
Bain’s proposal values Insignia’s shares at AUD4.43 each, a 3.8% premium over the previous closing price and a 7% increase from its initial bid, which was rejected by Insignia’s board in December.
The increased competition has pushed Insignia’s stock to a three-year high, climbing as much as 2.7% in early trading to AUD4.55. Despite this momentum, Insignia has warned that granting both bidders limited due diligence does not guarantee a binding or board-approved offer.
Insignia Financial’s strong appeal lies in its growth trajectory. As of December 31, 2024, the Australian wealth manager’s funds under management and administration rose by AUD7.2bn to reach AUD326.8bn. The firm is an attractive target for private equity investors seeking exposure to Australia’s lucrative AUD4.1tn superannuation market.
This high-stakes bidding war underscores the growing interest from private equity in the Australian wealth management sector, as Bain and CC Capital vie for a share of Insignia’s impressive growth potential.
Source: Reuters
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