(Reuters) – Insignia Financial said on Thursday it had received an improved offer from U.S.-based Bain Capital to buy the money manager for A$3.07 billion ($1.92 billion), matching rival CC Capital Partners (WA:)’ bid as the bidding war escalates.
Insignia Financial previously rejected an approach from private equity firm Bain Capital in late December, deeming the offer insufficient for its shareholders.
The 178-year-old Australian money manager’s initial reluctance to partner with Bain Capital sparked a bidding war, with US investment manager CC Capital Partners subsequently entering the fray.
Bain Capital’s revised offer values the company’s shares at a 3.8% premium to their last closing price of A$4.43 apiece.
This represents an improvement over Bain’s previous non-binding indicative proposal of A$4.30 in cash per share, representing an increase of 7%.
Earlier this month, CC Capital Partners raised a stake in a competing bid, seeking a foothold in Australia’s lucrative A$4.1 trillion pension system, a prize that has fueled fierce competition between the two suitors.
Meanwhile, Insignia has offered Bain Capital a limited period of access to certain non-public information on a non-exclusive basis.
A similar offer was made to CC Capital Partners earlier this week, as the wealth manager seeks to encourage both bidders to potentially improve their bids.
“The provision of limited due diligence does not guarantee that Bain’s second revised indicative proposal will result in a binding offer or one that may be recommended by Insignia Financial’s Board of Directors,” the company clarified.
Insignia Financial’s assets under management and administration grew by A$7.2 billion to A$326.8 billion as of December 31, underscoring strong investor appetite for Australian-listed wealth managers with growing asset bases.
($1 = 1.5949 Australian dollars)
