Insignia Financial Rejects Bain Capital's Takeover Bid

Investing.com — Australia's Insignia Financial has rejected a A$2.67 billion ($1.69 billion) takeover bid from Bain Capital, stating that the offer does not provide fair value to its shareholders.

Last week, Bain made a preliminary, non-binding bid to acquire the Australian wealth manager for A$4.00 cash per share. However, Insignia declined the offer on Wednesday due to valuation concerns.

The proposed offer price represented a 17.6% premium to the stock's closing price at the time of the offer. Following the announcement, shares of Insignia fell as much as 3% to A$3.50, after hitting a two-year high last week post-Bain's offer.

In a statement, Insignia said, "The Proposed Transaction does not adequately represent fair value for IFL shareholders in the context of a change of control transaction and that it is not in the best interests of IFL shareholders to engage with Bain Capital in relation to the Indicative Proposal."

Founded in 1846, Insignia Financial provides financial advice, superannuation, wrap platforms, and asset management services to financial advisers and corporate employers.