Insignia Financial shares soared to a three-year high on Monday after it revealed a A$2.87 billion takeover bid from US-based investment manager CC Capital Partners, eclipsing a A$2.67 billion offer from Bain Capital.
The deal would give CC Capital access to Australia’s A$4.1 trillion superannuation system, considered one of the world’s largest private pension markets. Insignia Financial, a 178-year-old Australian money manager previously known as IOOF, had rejected Bain Capital’s approach in December, citing that the offer did not provide fair value to its shareholders.
Insignia’s shares gained 11% to A$3.93 per share in early trade, reaching their highest level since 2022, but remained below the A$4.30 per share cash offer. The company’s board is considering CC Capital’s proposal to assess whether it is in the best interests of its shareholders.
CC Capital’s non-binding bid offers a 7.5% premium to Bain Capital’s offer and a 21.5% premium to Insignia’s last closing price of A$3.54 on Friday. The deal is contingent on Foreign Investment Review Board and prudential regulatory approval.
The transaction would be CC Capital’s first major investment in Australia. If successful, it would be a significant deal for the company, which was formed almost a decade ago by Chinh Chu, the former co-head of private equity at Blackstone.
Insignia provides superannuation, financial advice, and asset management services, with A$319.6 billion of funds under management and administration at the end of September. The deal could be a boost to corporate buyout activity in Australia, which has seen a rebound in 2024, with Australian M&A activity worth A$113.4 billion, up 15% on 2023.