Insignia Financial Receives Takeover Proposal

Reuters – On Friday, Australia’s Insignia Financial announced it has received a non-binding all-cash takeover proposal from private equity firm Bain Capital, valuing the 178-year-old wealth manager at A$2.67 billion (approximately $1.70 billion).

Offer Details

Under the proposal, Insignia shareholders are set to receive A$4.00 per share, which is a 17.6% premium over the stock’s closing price of A$3.40 on Thursday.

Market Reaction

Following reports about the offer, Insignia’s stock surged more than 10% during the last 10 minutes of Thursday's trade settlements.

Company Background

Insignia’s board is currently evaluating the proposal to determine whether to engage with Bain. Founded in 1846, Insignia provides financial advice and asset management services, holding A$319.6 billion in funds under management and administration as of the end of September.

Recent Performance

In August, the Melbourne-based firm recorded a full-year statutory net loss after tax and suspended dividend payments. The company’s stock has increased over 45% this year based on Thursday’s closing price.

$1 = 1.5711 Australian dollars