Insignia shares rise on sweetened offer from Bain; bidding war intensifies

Insignia Financial Ltd (ASX:IFL ) shares rose on Monday after announcing it has received a sweetened buyout proposal from Bain Capital valuing the wealth manager at A$2.87 billion ($1.76 billion), which matches a competing bid from CC Capital Partners (WA:CPAP ) submitted earlier this month.

Bain increased its offer to A$4.30 per share in cash, representing a 7.5% premium over its initial bid of A$4.00 per share submitted in December.

The new offer matches CC Capital Partners' A$4.3 per scrip offer, signaling intensified interest in acquiring one of Australia’s leading wealth management firms.

Insignia shares opened 2.5% higher at A$4.25, near the offer price from both firms.

Bain Capital has also expressed openness to a potential transaction structure allowing Insignia shareholders to receive a portion of their consideration as equity in the Bain-controlled holding entity for Insignia Financial, the company said in a statement.

Insignia’s board is currently assessing both offers with the assistance of its financial advisers, Citigroup (NYSE:C ) and Gresham Advisory Partners, and legal adviser King & Wood Mallesons. The board emphasized that there is no certainty either bid will culminate in a binding offer or definitive transaction, the company said.

The enhanced proposal comes as Insignia Financial continues to assert its role as a prominent player in the financial services sector, with a history dating back to 1846. Today, the company manages a wide range of services including superannuation, financial advice, and asset management, catering to advisers, members, and employers across the nation.

Source: Investing.com