Insignia Financial shares slide on CC Capital takeover uncertainty
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More news: Insignia Financial shares tumbled in morning trade after the wealth manager warned investors that there was "no certainty" that a deal with long-term suitor CC Capital would materialise.
Insignia shares were down 6% to $3.92 at 11:10am AEST, having advanced nearly 65% over the last 12 months.
Insignia Financial says 'no certainty' of CC Capital buyout as talks continue
The news: Wealth manager Insignia Financial told investors this morning that its board is continuing to engage in discussions with US private equity firm CC Capital over its proposed $3.4 billion buyout.
The context: On 1 July, Insignia shares rocketed after CC Capital said it was finalising financing and investment committee approvals for the acquisition, a process that was expected to take two weeks.
In an ASX release today, Insignia said "there is no certainty that the ongoing discussions will result in any transaction being put to Insignia Financial shareholders for their consideration".
CC Capital submitted a non-binding proposal of $5 per share in March, valuing Insignia at $3.35 billion. Insignia shares last closed at $4.17.
The source: ASX
