Insignia Financial Ltd (ASX: IFL) has received revised, non-binding proposals from Bain Capital Private Equity and CC Capital Partners, with both bidders independently increasing their offers to $5.00 per share in cash. This represents a significant premium and a compelling opportunity for shareholders.
Key Takeaways from the Revised Proposals
- $5.00 per share offer (adjusted for dividends), marking an 8.7% increase from their previous $4.60 per share bids.
- Represents a 63% premium to Insignia’s closing price on December 11, 2024 (pre-bid price of $3.06).
- Exclusivity Deeds signed with both bidders to progress due diligence, expected to wrap up in six weeks.
- The Insignia Board intends to recommend an offer of at least $5.00 per share, in the absence of a superior proposal.
What Happens Next?
Both Bain and CC Capital will now conduct confirmatory due diligence, after which they must secure:
- Final investment committee approvals from their respective firms.
- A unanimous recommendation from Insignia’s Board, pending an independent expert’s endorsement.
- Regulatory approvals, including from APRA and FIRB, before any deal can be put to shareholders.
The $5.00 per share proposal factors in the repayment of Insignia’s $253.5 million Subordinated Loan Notes, which are due in May 2026.
No Action Required—Yet
For now, Insignia shareholders don’t need to do anything. There’s no guarantee that a formal transaction will proceed, but with both bidders now in an exclusivity phase, the race for Insignia is heating up. The company will keep the market informed as developments unfold.
