Bain Capital and CC Capital have further sweetened their buyout offers for Australian wealth manager Insignia Financial.
The two private equity firms have independently submitted their revised bids, now valuing Insignia Financial at A$3.34bn ($2.11bn), reported Reuters.
Go deeper with GlobalData
The offers, now at A$5.00 cash per share, mark an 8.7% increase from the previous offer and a significant premium over past share prices.
The Board of Insignia Financial has found the terms of each proposal “attractive” for shareholders. They have agreed to enter exclusivity deeds with both bidders to advance the offers.
The offers are subject to conditions including satisfactory due diligence, unanimous board recommendation, agreement on a scheme implementation deed, and final investment committee approval from Bain or CC Capital.
Additionally, any transaction would require regulatory approvals and the support of Insignia Financial’s shareholders.
In January this year, Insignia Financial received a non-binding A$2.9bn ($1.8bn) buyout offer from CC Capital Partners, proposing a takeover at A$4.30 per share, adjusted for dividends.
Same month, Bain Capital submitted its bid for Insignia Financial to A$2.87bn ($1.76bn), matching CC Capital’s offer.
Later, Bain Capital again raised its bid for Insignia Financial to A$4.60 per share, matching CC Capital’s increased offer.
Founded in 1846, Insignia Financial provides financial advice, superannuation, wrap platforms, and asset management services.
