Steadfast Group extends due diligence to Amwins and Dragoneer over $7.7b buyout

The news: Insurance broker Steadfast Group has extended its due diligence period granted to joint suitors Amwins Group and Dragoneer Investment Group, after the US-based pair re-confirmed their intention to proceed with their $7.7 billion takeover proposal.

The context: The consortium was first granted exclusive due diligence on 10 June, which has now been extended by a further four weeks.

Insurance distributor Amwins and investment firm Dragoneer lodged the $6-per-share bid in June, following previous non-binding indicative proposals made at $5.50 and $5.83 per share.

The stock last closed at $5.15 per share.

Steadfast’s board said on Thursday there is no guarantee that a binding agreement will be reached with the consortium, and no certainty that the proposal will result in a transaction.