The saga continues: Brookfield enters $1.9bn bidding war for Insignia Financial

Brookfield Asset Management joined Bain Capital and CC Capital in the race to acquire Insignia Financial, Australia’s third-largest superannuation provider, with a bid valuing the firm at AUD3bn ($1.9bn).

Insignia confirmed Brookfield’s offer, which matches those previously submitted by Bain and CC Capital.

Following the announcement, Insignia’s shares surged 7.6% to AUD4.65, slightly above the AUD4.60 per share proposed by all three bidders. Brookfield, headquartered in New York and listed in Toronto, has also offered Insignia shareholders the option to take equity in its unlisted bid vehicle, providing additional flexibility.

Insignia, formerly known as IOOF, oversees AUD327bn in client assets, making it an attractive target within Australia’s AUD4.1tn superannuation industry. The firm offers both funds management and financial advisory services, positioning it as a key player in the wealth management space.

The bidding war began in December when Bain Capital made an initial offer valuing Insignia at AUD2.2bn. After Insignia rejected Bain’s proposal, CC Capital entered the fray, intensifying competition. With Brookfield now in the mix, Insignia has granted all three suitors limited access to its financial records as part of the due diligence process.

The heightened interest in Insignia reflects the strong investor appetite for Australian wealth managers, driven by the country’s robust pension system and the increasing demand for financial services in the sector.

Source: Reuters

Read our previous articles covering the evolution of this transaction here.

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