Investing.com– Shares of Insignia Financial Ltd (ASX:) rose on Monday after it said it had received a sweetened takeover offer from Bain Capital that values the wealth manager at A$2.87 billion ($1.76 billion), which corresponds to CC’s competitive offer Capital Partners (WA:) filed earlier this month.
Bain increased the offer to A$4.30 per share in cash, representing a 7.5% premium to the initial offer of A$4.00 per share submitted in December.
The new offer matches CC Capital Partners’ offer of A$4.3 per issue, signaling increased interest in the takeover of one of Australia’s leading asset management companies.
Insignia shares opened 2.5% higher at A$4.25, close to both companies’ offer prices.
Bain Capital also expressed openness to a potential transaction structure that would allow Insignia shareholders to receive a portion of their compensation as an equity stake in a holding entity controlled by Bain for Insignia Financial, the company said in a statement.
Insignia’s board is currently evaluating both offers with the assistance of its financial advisors, Citigroup (NYSE:) and Gresham Advisory Partners, and legal counsel to King & Wood Mallesons. Management emphasized that there is no certainty that any offer will culminate in a binding offer or a definitive transaction, the company said.
The enhanced proposition comes as Insignia Financial continues to highlight its role as a prominent player in the financial services sector, with a history dating back to 1846. Today, the company operates a wide range of services including pensions, financial advisory and asset management, serving advisers, members and employers across countries.
