Insignia Financial shares tumble as board rejects Bain Capital buyout
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More news: Shares in Insignia Financial lowered at market open on the ASX after the wealth manager rejected a takeover offer from US private equity giant Bain Capital.
Insignia shares were down 2.1% to $3.53 by 10:35am AEDT, having gained more than 6% on Friday after the offer was announced.
Insignia Financial rejects Bain Capital's $2.68b takeover bid
The news: ASX-listed wealth manager Insignia Financial has rejected a takeover offer from US private equity giant Bain Capital, announced last week, after its board determined that the proposal is not in the best interests of its shareholders.
The context: The board determined that Bain's offer "does not adequately represent fair value" for Insignia shareholders and that it is not in their best interests to engage with the private equity firm in relation to the proposal.
Insignia said its board "carefully considered the terms of the indicative proposal including obtaining advice from its financial and legal advisors".
On Friday, Insignia told the market it had received a "confidential, preliminary, non-binding and indicative" proposal from Bain.
The Boston-based private investment firm had offered $4 a share for the company, a 30% premium to its previous closing price. On Tuesday its share closed at $3.60.
The source: ASX announcement
