PE bidding war for Insignia heats up to $5 per share

Insignia Financial has received improved takeover bids from competing private equity players – Bain Capital and CC Capital.

The company has announced to the Australian Securities Exchange (ASX) that it has received revised non-binding and indicative proposals from the two entities with both bidders separately and independently submitting increased propsals at a price of $5 cash per share.

Insignia said that after careful consideration the Board had determined the terms of each proposal to be attractive for Insignia Financial shareholders with the result that the firm will enter into an Exclusivity Deed with both companies to further progress the proposals.

It said both parties would be given comfirmatory due diligence that is expected to be completed in within six weeks.

The revised Proposals of $5.00 per share represent an increase of 8.7% from the $4.60 per share offers

previously made by each of Bain and CC Capital respectively, with the cash consideration under each

Proposal also representing:

• a premium of 63% to the closing price of Insignia Financial shares on 11 December 2024 of A$3.06(being the last trading day prior to announcement of Insignia Financial’s receipt of a proposal from Bain);

• a premium of 56% to the volume-weighted average price of Insignia Financial shares for the one month up to and including 11 December 2024; and

• a premium of 77% to the volume weighted average price of Insignia Financial shares for the threemonths up to and including 11 December 2024.