Insignia Financial receives yet another takeover bid

Not even one month after receiving and dismissing a takeover bid from US private equity giant Bain Capital, Insignia Financial has received another indicative acquisition proposal from US-based CC Capital Partners.

In an announcement made to the Australian Securities Exchange this morning, Insignia said they had received the non-binding proposal on 3 January 2025, confirming that CC Capital offered 7.5 per cent more than Bain Capital’s proposal received on 12 December 2024.

CC Capital’s proposal includes $4.30 cash per share, compared to Bain Capital’s $4 cash per share.

The announcement also confirmed that the Board is considering whether the proposal is in the best interests of its shareholders, along with its financial advisers, Citigroup and Gresham Advisory Partners, and legal advisers, King & Wood Mallesons.

While Insignia said there is no certainty that the indicative proposal would eventuate into any transaction, any further concrete plans would be subject to approval by the Foreign Investment Review Board and the Australian Prudential Regulation Authority (APRA).

“The Indicative Proposal is expressed to be subject to a number of conditions including satisfactory completion of due diligence on an exclusive basis and execution of a binding scheme implementation agreement,” the ASX statement said.

“The scheme implementation agreement, if entered into, would be conditional on (amongst other things) a unanimous recommendation from the Insignia Financial Board of Directors and commitment from all directors to vote in favour of the transaction (in the absence of a superior proposal and subject to an independent expert concluding that the transaction is in the best interests of IFL shareholders) and approval from CC Capital’s investment committee.”