Australia’s Insignia hits over 3-yr high on $1.8 bln buyout bid from CC Capital

Investing.com– Australia’s Insignia Financial Ltd (ASX:) shares jumped to their highest level in more than three years on Monday after the company received an A$2.87 billion ($1.78 billion) takeover bid from U.S.-based CC Capital Partners (WA:).

The company said on Monday that it received an indicating, non-binding offer from CC Capital to acquire all the shares of Insignia at a price of A$4.30 cash per share offer.

The offer price represents a 21.5% premium to Insignia’s last closing price on Friday.

Insignia shares jumped 12% to A$3.96, their highest level since late November 2021.

The company had rejected an A$2.67 billion ($1.69 billion) takeover bid from Bain Capital last week, saying the offer does not provide fair value to its shareholders.

Bain had made a preliminary, non-binding bid to acquire the Australian wealth manager for A$4.00 cash per share, which offered a 17.6% premium to the stock’s closing price at the time when the offer was made.

CC Capital’s bid is at a 7.5% premium to Bain Capital’s offer.

“The Board of Insignia Financial, together with its financial and legal advisers, is considering the Indicative Proposal to assess whether it is in the best interests of shareholders to engage with CC Capital,” the company said in a statement.

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