Australian Wealth Manager Insignia Financial Rejects $1.69 Billion Takeover Bid from Bain Capital
Insignia Financial, an Australian financial services company, has rejected a A$2.67 billion ($1.69 billion) takeover bid from private equity firm Bain Capital. The offer, worth A$4.00 per share, was deemed inadequate by the company, which cited valuation concerns.
The rejection comes after Insignia’s shares hit a two-year high last week, reaching A$3.50 after the takeover bid was made. The company’s board of directors believes that the offer does not provide fair value to its shareholders in the context of a change of control transaction.
In a statement, Insignia said, “The Proposed Transaction does not adequately represent fair value for IFL shareholders in the context of a change of control transaction and that it is not in the best interests of IFL shareholders to engage with Bain Capital in relation to the Indicative Proposal.”
Founded in 1846, Insignia provides financial advice, superannuation, wrap platforms, and asset management services to financial advisers and corporate employers. Despite the initial rejection, it remains to be seen whether the two companies will engage in further negotiations or if the deal will fall through.
