Insignia Financial shares jump 12% as Bain Capital, CC Capital hike takeover bids
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More news: Insignia Financial shares rocketed after rival suitors Bain Capital and CC Capital Partners both raised their takeover offers for the wealth manager.
Insignia shares were up 12.2% to $4.78 at 10:30am AEDT, having soared more than 55% since the bidding war between the US private equity firms began in early December.
Bain Capital, CC Capital make fresh $3.35b bids for Insignia Financial
The news: Wealth manager Insignia Financial has received improved takeover proposals from rival suitors Bain Capital and CC Capital Partners, valuing the company at around $3.35 billion.
The numbers: US private equity firms CC Capital and Bain Capital have independently submitted proposals of $5 per share, up from previous separate bids of $4.60 per share.
The revised offers represent a premium of 63% to Insignia's closing price of $3.06 on 11 December, the day before Bain Capital's initial proposal was announced. Insignia shares last closed at $4.26 per share.
The context: Insignia, which also saw investment giant Brookfield Capital Partners join the bidding war last month, said its board has determined that both of the increased proposals are attractive for its shareholders. It has decided to enter into an exclusivity deed with each suitor to "further progress their respective proposals".
Insignia's board will provide both CC Capital and Bain Capital with access to confirmatory due diligence, expected to be completed within six weeks.
The source: ASX
