Insignia Financial has received a revised proposal from Bain Capital, raising its offer to A$4.3 ($2.6) per share in cash, which values the Australian financial services company at A$2.87bn ($1.77bn).
The updated bid represents a 7.5% premium to Bain Capital’s initial proposal of A$4 ($2.46) per share, made on 12 December 2024. It also matches a competing offer from CC Capital Partners, which was submitted on 3 January 2025.
Additionally, Bain Capital indicated that it is open to structuring the deal to provide Insignia Financial’s shareholders. This includes an option to receive part of their consideration in scrip in the ultimate Bain Capital-controlled holding entity of Insignia Financial.
The terms and conditions of Bain Capital’s revised proposal remain consistent with its initial offer.
Insignia Financial’s board, along with its financial and legal advisers, is currently evaluating the revised proposal alongside the competing offer from CC Capital.
Last week, Insignia Financial rejected Bain Capital’s initial bid, stating that it did not provide fair value for shareholders. CC Capital subsequently submitted its own proposal, sparking competitive interest in the Australian financial services company.
Both proposals are non-binding, and Insignia Financial has cautioned that there is no certainty that either will progress to a binding offer or result in a transaction.
The company has assured shareholders that it will provide updates in accordance with continuous disclosure obligations.
Shares in Insignia Financial closed at A$4.12 ($2.53) prior to the revised proposal, with Bain Capital’s latest offer representing a 4.4% premium to this closing price.
Founded in 1846, Insignia Financial offers a range of services, including financial advice, superannuation, wrap platforms, and asset management, catering to members, financial advisers, and corporate employers.
Insignia Financial has engaged Citigroup and Gresham Advisory Partners as financial advisers and King & Wood Mallesons as legal counsel.
