Global asset management giant Brookfield has joined the tussle for Insignia Financial by matching the two rival offers with a bid that values the Australian financial services group at A$3.1 billion.
Insignia said it had received a confidential, non-binding and indicative proposal from Brookfield Capital Partners (UK) Limited to acquire all of its shares by way of a scheme of arrangement at a price of $4.60 cash per share.
This bid, which had been the subject of speculation in recent weeks, is the same price offered by private investment firm CC Capital Partners and private equity giant Bain Capital.
Insignia said it would provide Brookfield with a limited period of access to non-public information on a non-exclusive basis to determine if Brookfield was able to raise its offer.
“The provision of limited due diligence does not guarantee that the Indicative Proposal will result in a binding offer or one that is capable of being recommended by the Board of Insignia Financial,” the company said in an ASX announcement.
The Brookfield proposal is subject to conditions including satisfactory completion of due diligence, execution of a binding scheme implementation agreement, unanimous support from the Insignia Board and approval from Brookfield’s investment committee.
Bain included in its proposal the potential for shareholders who accepted the offer to receive shares in the ultimate holding company if the buyout proceeds.
Insignia Financial (ASX: IFL) shares closed on Friday at $4.63, up three cents or 0.65%, valuing the 178 year old company formerly known as IOOF Holdings at $3.11 billion.
