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).
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.
The company’s board is considering the proposal to assess whether to engage with Bain, it said.
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.
In August, the Melbourne-based company had swung to a full-year statutory net loss after tax, and paused its dividend payments.
Its stock has gained over 45% this year, based on Thursday’s close.
Reuters
