Insignia Financial shares soar on Bain Capital takeover bid
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More news: Shares in Insignia Financial surged in early trading on the ASX after the wealth manager received a takeover proposal from US private equity group Bain Capital.
Insignia shares were up 6.5% to $3.62 by 11:35am AEDT, with gains of more than 50% since January.
What they said: "Given the very weak relative performance recently we’d expect a relief rally today," said E&P Capital analyst Olivier Coulon.
"We suspect this may remind investors that [Insignia] was previously the target of the failed EQT proposal and that there has been press more recently linking it to a software focused private equity player."
Insignia Financial receives $2.68b takeover bid from Bain Capital
The news: Wealth manager Insignia Financial has received a non-binding and indicative takeover offer from private equity giant Bain Capital, valuing the company at around $2.68 billion.
The numbers: Under the terms of the proposal, Insignia shareholders would receive $4 cash per share. Insignia shares last closed at $3.40.
The context: Insignia said that the proposal for 100% of the company's shares is subject to a number of conditions including completion of exclusive due diligence and the unanimous recommendation from Insignia's board of directors in favour of the transaction.
The deal will also require approval from Bain's investment committee, the Foreign Investment Review Board, and the Australian Prudential Regulation Authority.
Insignia's board is currently considering the offer to assess whether it is in the best interests of shareholders to engage with Bain.
The source: ASX announcement
