Australia’s Insignia agrees to A$3.3 billion takeover by CC Capital, ending bidding war

AUSTRALIA’S Insignia Financial agreed on Tuesday to a A$3.3 billion (S$2.8 billion) all-cash takeover by investment manager CC Capital, ending a months-long bidding war after US-based rival Bain Capital withdrew its competing offer.

Under the agreed deal, CC Capital will pay shareholders A$4.80 per share in cash.

That represents a 22.14 per cent premium to Insignia’s closing price on Monday. However, it’s slightly below CC Capital’s improved bid of A$5 per share it made in March to match Bain Capital’s A$3.34 billion offer before the US private equity firm withdrew it in May.

The 178-year-old Australian wealth manager had initially rejected Bain’s December approach, deeming it insufficient, sparking a bidding contest when CC Capital Partners entered as a rival suitor.

Insignia’s board unanimously recommended shareholders approve the scheme of arrangement “in the absence of a superior proposal”. REUTERS