The bidding war for Insignia Financial has intensified, with private equity giant Bain Capital raising its offer amid speculation asset management giant Brookfield is considering joining the fray.
Bain Capital lifted its bid from $4 per share to match the $4.30 offered by CC Capital Partners LLC to value the 178-year-old financial services group at $2.9 billion, Insignia Financial said in an Australian Securities Exchange (ASX) announcement.
Insignia had also told the ASX on Friday that it noted a report in the Australian newspaper concerning speculation that Brookfield was actively weighing a bid for Insignia.
“Insignia Financial confirms that it has not received any proposal from Brookfield,” the company said in the announcement.
Insignia said the latest “revised indicative proposal” from Bain represented a 7.5% premium to Bain’s original offer on 12 December 2024 and was the same cash price as proposed by CC Capital on 3 January 2025.
Bain Capital noted it was open to discussing a transaction structure that would provide Insignia shareholders with the chance to receive a proportion of the consideration as scrip in the ultimate Bain-controlled holding entity.
Insignia said its Board and financial and legal advisers were considering the Bain and CC Capital proposals.
“There is no certainty that either proposal will result in a binding offer or that any transaction will eventuate,” Insignia said.
Insignia shares closed on Friday at $4.12, above the initial Bain offer but below the revised offers, valuing the target company at $2.76 billion.
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