Treasurer Jim Chalmers clears CC Capital’s $3.3b buyout of Insignia Financial
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The news: Treasurer Jim Chalmers has greenlit US-based CC Capital’s proposed $3.3 billion takeover of Insignia Financial, nearly nine months after the scheme of arrangement was first announced.
The numbers: Insignia shares were up 0.3% to $4.77 at 11:45am AEST.
Under the scheme, CC Capital is proposing to acquire all shares in Insignia for a cash consideration of $4.80 per share. This implies an equity value of around $3.3 billion.
The context: The Foreign Investment Review Board (FIRB) confirmed Chalmers had “no objections” to the scheme.
FIRB approval was required for the deal, which remains subject to a number of other conditions, including the approval of Insignia shareholders and court approval.
Insignia’s board has unanimously recommended that shareholders vote in favour of the scheme. The scheme meeting is scheduled for 13 April.
The source: ASX
