Insignia shares slide after Bain withdraws takeover bid
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More news: Shares in Insignia Financial have slumped nearly 14% to $3.45 in early trading after the wealth manager said US private equity firm Bain Capital dropped out of the race to acquire its shares, citing macroeconomic uncertainty.
Insignia said it remains in discussions with rival bidder, private equity firm CC Capital, which has advised that it continues to actively work towards making a binding bid for the company over the coming weeks. However, it warned that there is no certainty that the ongoing discussions will result in any transaction.
Bain Capital drops out of race for Insignia Financial
The news: US private equity firm Bain Capital has dropped out of the race to take over Australian wealth manager Insignia Financial, citing macroeconomic uncertainty.
The numbers: Bain and rival US private equity firm CC Capital had independently submitted revised proposals of $5 per share in March, valuing Insignia at $3.35 billion. The target company in April extended the exclusivity period with both Bain and CC Capital in their respective exclusivity deeds by four weeks, which was due to expire on 15 May.
Insignia shares last traded at $4 each.
The context: Insignia said it was informed by Bain that it will be unable to proceed at this time with making a binding offer for the company, due to “the macro uncertainty caused by the volatility in global capital markets”.
“Insignia Financial remains in discussions with CC Capital, which has advised that it continues to actively work towards making a binding bid for the company over the coming weeks,” it said, adding that there is no certainty that the ongoing discussions will result in any transaction.
The source: ASX
