Challenger shares surge on TAL Dai-ichi Life investment
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More news: Shares in Challenger rocketed at market open, as the wider market slumped, after Japanese insurance group TAL Dai-ichi Life bought a 15.1% stake in the investment manager at a 53% premium to Friday's closing share price.
Challenger shares were up 12.5% to $6.20 at 10:30am AEST, making it the only ASX 200 company in the green.
TAL Dai-ichi Life buys 15.1% stake in Challenger
The news: Dai-ichi Life's Australian subsidiary TAL has agreed to acquire a 15.1% stake in investment management firm Challenger.
The numbers: Dai-ichi Life will buy the minority interest from fellow Japanese insurance company MS&AD for around $8.46 per share, representing a 53% premium to Challenger's last closing price of $5.54.
The context: Challenger said the share sale is subject to customary regulatory approvals, including from the Australian Foreign Investment Review Board and the Australian Prudential Regulation Authority.
Challenger said the share sale will not impact its current reinsurance partnership with MS&AD subsidiary Mitsui Sumitomo Primary Life Insurance.
Following the completion of the sale of MS&AD's equity holding in Challenger, Masahiko Kobayashi will step down as MS&AD's representative on the Challenger board.
What they said: "Dai-ichi Life is a global leader in life insurance and we look forward to building a relationship that will benefit both our customers and shareholders," said Challenger's managing director and CEO Nick Hamilton.
"We welcome their significant investment in our business and will explore future opportunities that support our strategic objectives," he said.
The source: ASX
