Insignia shares lift as it reports rise in FUMA; Bain Capital hikes takeover bid
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More news: Insignia Financial shares continued their recent rally on the ASX, boosted by a fresh takeover offer by US private equity firm Bain Capital and as the company reported a rise in its funds under management and advice (RUMA).
Insignia shares were up 2.4% to $4.54 by 11:05am, having advanced by more than 30% since Bain tabled its opening offer in December.
Insignia also reported a 2.2% rise in FUMA to $326.8 billion for the December quarter.
Bain Capital matches CC Capital's takeover bid for Insignia
The news: Wealth manager Insignia Financial has received an improved takeover proposal from US private equity giant Bain Capital, matching the latest offer from rival suitor CC Capital.
Insignia also posted a rise in its funds under management and administration (FUMA) for the December quarter due to strong market growth and improved flows.
The numbers: Insignia said it has offered to provide Bain with a period of limited due diligence, to determine if it can improve on its $4.60-per-share proposal. Insignia also provided CC Capital with a period of due diligence earlier this week.
Bain's revised offer represents a 7% premium to its previous bid of $4.30 per share, and values Insignia at nearly $3.1 billion.
Meanwhile, Insignia reported a 2.2% rise in FUMA for the December quarter. The company added $7.2 billion during the period, for a total of $326.8 billion as of 31 December 2024.
The context: Insignia said FUMA growth during the period was supported by strong market growth and improved flows performance across several business channels.
The company said that it remains on track to meet its target of becoming Australia's "leading and most efficient" wealth management company by 2030.
The sources: ASX announcement, ASX announcement
