US private equity in fight for Australian wealth manager Insignia Financial
Bain Capital has triggered a bidding war for Insignia Financial by matching private equity rival CC Capital’s $2.9 billion takeover offer for the Australian wealth manager.
The improved, all cash offer of $4.30 a share puts another $200 million on the table for Insignia, which manages superannuation accounts and provides financial advice through investment platforms including MLC.
Insignia shares rose 2 per cent on the news but were still short of the joint offers at $4.21 as at 9.30am.
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By continuing you agree to our Terms and Privacy Policy.Bain’s opening offer of $4 a share was rejected by Insignia’s board in mid-December as too low, prompting CC Capital to last week sound out the Australian company with its own proposal.
The Insignia board is still evaluating that offer and will now look at the new Bain bid in tandem..
“The board of Insignia Financial, together with its financial and legal advisers, is considering the revised indicative proposal in parallel with its consideration of the CC Capital proposal,” Insignia said.
“Shareholders do not need to take any action at this time,” it said.
“Insignia Financial will continue to keep the market informed in accordance with its continuous disclosure obligations.”
Bain also suggested it was open to following CC Capital and also enabling Insignia shareholders to take some of the offer in shares in the private equity group’s bidding vehicle to keep exposure to the wealth manager’s business.
Overseas companies are showing increased interest in Australian wealth managers because of the latter’s access to one of the world’s fastest growing superannuation pools, now valued at $4.1 trillion.
Founded in 1846 as the Independent Order of Oddfellows to help working families, IOOF changed its name to Insignia in 2021 after being castigated over customer failures by the banking royal commission.
It has about $320 billion under management.
The group is in the midst of a years-long turnaround plan implemented by chief executive Scott Hartley, who took over in March 2024.
