Cash continues to rain down on an organisation founded 178 years ago to help people in times of hardship, with global fund managers upping the financial ante on Friday to take over Insignia Financial.
Private equity giant Bain Capital and private investment firm CC Capital Partners increased their offers for the Australian superannuation and financial services company, which was rebranded from IOOF Holdings in 2021.
Insignia (ASX: IFL) said Bain Capital and CC Capital had submitted proposals to buy the company at A$5 (US$3.15) cash per share (adjusted for any dividend paid or payable after the date of the proposals), valuing it at $3.3 billion.
This was 40 cents per share more than the two bidders previously offered under their non-binding and indicative proposals to buy all of the shares under schemes of arrangement.
The company said the Board had determined the proposals were attractive and it would be in the best interests of shareholders to enter into an exclusivity deed with Bain and CC Capital to progress their respective proposals.
“The IFL Board will provide both parties access to confirmatory due diligence that is expected to be completed within six weeks,” Insignia said in an ASX announcement.
in the absence of a higher offer, the Board intended to recommend an offer of at least $5 per share.
This leaves the ball in the court of third bidder Brookfield to lift its $4.60 cash per share offer to remain in the race for Insignia, which was established in1846 as the Independent Order of Odd Fellows (IOOF).
Bain had included in its proposal the potential for shareholders who accepted the offer to receive shares in the ultimate holding company if the buyout proceeds.
By 11:30 am AEDT (12:30 am GMT) Insignia shares had risen 48 cents (11.38%) to $4.74 after trading between $4.72 and a 52 week high of $4.84, eclipsing the former bid price but not reaching the new offer level.
