• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Australia’s Insignia Financial gets $1.7 billion takeover offer from Bain Capital; shares rise

by December 13, 2024
written by December 13, 2024

By Aaditya GovindRao

(Reuters) -Australia’s Insignia Financial said on Friday it has received a non-binding takeover all-cash proposal from private equity Bain Capital, valuing the 178-year-old wealth manager at A$2.67 billion ($1.70 billion), in another bid that represents growing interest in the country’s investment managers.

Shares in Insignia rose as much as 9.6% to A$3.725 by 0043 GMT, their highest since mid-January, 2023. That made it one of the top gainers on the benchmark index, which was down 0.6%.

Under the offer, Insignia shareholders will receive A$4.00 per share, which represents a 17.6% premium to the stock’s closing price of A$3.40 on Thursday.

The stock shot up more than 10% in the last 10 minutes of trade settlements on Thursday following local media reports about the offer.

Founded in 1846, Insignia provides financial advice and asset management services. It had A$319.6 billion worth of funds under management and administration at the end of September.

The company’s board is considering the proposal to assess whether to engage with Bain, it said.

Brian Freitas, founder at Periscope Analytics, called Bain’s offer “opportunistic,” citing Insignia stock’s underperformance relative to its peers over the past two years.

The offer “could see pushback from Insignia’s board,” Freitas said in a note on research platform Smartkarma.

In August, the Melbourne-based company had swung to a full-year statutory net loss after tax, and paused its dividend payments.

Australian investment managers have received major interest by bidders this year, as evidenced by Bain-rival KKR & Co (NYSE:KKR)’s A$2.18 billion deal to buy Insignia-peer Perpetual’s wealth management and corporate trust businesses in May.

In September, Platinum Asset Management had also received an A$616.5 million bid from hedge fund Regal Partners, which ultimately fell through.

“Given the recent interest in Australian investment/wealth managers, we could see competing offers emerge,” Freitas added.

Bain Capital did not immediately respond to a request for comment.

($1 = 1.5711 Australian dollars)

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Private Medicare plans must cover Biogen’s ALS drug, US agency says
next post
Australian data centre firm DigiCo REIT largely flat in trading debut

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Lawyer group urges overhaul of US bank charter...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • What are the consequences of Trump 2.0 for APAC stocks? CLSA weighs in
    • US cyber watchdog says no indication breach at Treasury hit other federal agencies

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy