Revised Bain Capital offer lifts Insignia shares
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More news: Shares in Insignia Financial were up 2.2% to $4.21 in early trading on the ASX after the wealth manager received a revised $4.30-a-share takeover offer from Bain Capital, matching a rival bid by CC Capital Partners.
Insignia, which previously rejected a lower offer from Bain, said its board is considering the revised offer in parallel with CC Capital’s proposal, but there is no guarantee that either deal will materialise.
Insignia Financial gets revised takeover bid from Bain
The news: Wealth manager Insignia Financial says it is considering a revised takeover proposal from Bain Capital that matches the offer from rival private equity suitor CC Capital Partners.
The numbers: The new proposal of $4.30 a share represents a 7.5% premium to Bain’s earlier takeover bid that was rejected by Insignia’s board last month. The latest offer comes after US-based private equity firm CC Capital Partners last week made a $2.9 billion takeover offer for the company.
Insignia’s ASX-listed shares closed at $4.12 on Friday.
The context: Insignia said Bain is open to a transaction structure that would allow the company’s shareholders to receive part payment in shares in the ultimate Bain Capital-controlled holding entity, but other terms and conditions remained the same as the earlier proposal.
The wealth manager said its board is considering Bain’s revised offer in parallel with CC Capital’s proposal, but there is no guarantee that either deal may materialise.
Insignia’s margins have been under pressure due to the costly complexity of integrating the two bank wealth businesses that it acquired, but last week Morgan Stanley analysts upgraded the stock and lifted their price target to $4.40 a share, citing stronger underlying earnings momentum from rising markets and longer-term potential for Insignia to establish a profitable footprint in a wealth landscape vacated by the banks.
The source: ASX
