Bain offers to buy Australia’s Insignia in A$2.7 billion deal

US PRIVATE equity giant Bain Capital offered to buy Insignia Financial, the Australian financial services firm, in a deal worth about A$2.7 billion (S$2.3 billion).

Insignia received a A$4 cash per share non-binding and indicative proposal on Thursday, which it will consider, according to a statement on Friday. 

Australia’s listed wealth managers have become attractive takeover targets for outside money managers as foreign investors eye the ballooning asset base from the country’s booming pensions system. Insignia’s business includes funds management and advice.

Insignia had about A$319.6 billion worth of funds under management and administration at the end of September, according to its website. 

The offer represents a more than 30 per cent premium to where the company’s shares closed on Wednesday, before reports on the prospective offer were first reported by the Australian Financial Review on Thursday.

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Elsewhere in the industry, Australian hedge fund Regal Partners ended is takeover talks with Platinum Asset Management. Discussions over the unsolicited A$526 million bid were called off by both sides.

Private equity firm KKR & Co struck a A$2.2 billion acquisition of Australian fund manager Perpetual’s wealth management business earlier this year after EQT teamed up with Regal to pursue the company in 2022.

Meantime, Bain, the Boston-based investment firm, has also been active in Japan. Bain increased its offer for Fuji Soft Inc, it said on Wednesday, with a rare bid that values the Japanese firm at US$4.3 billion and extending a battle with KKR. BLOOMBERG