(Reuters) -Insignia Financial said on Thursday it has received an improved offer from U.S.-based Bain Capital to acquire the money manager for A$3.07 billion ($1.92 billion), matching rival CC Capital Partners (WA:)’ offer as bidding war escalates.
Insignia Financial had previously rebuffed an approach from private equity firm Bain Capital in late December, deeming the offer insufficient for its shareholders.
The 178-year-old Australian money manager’s initial reluctance to engage with Bain Capital sparked a bidding war, with U.S.-based investment manager CC Capital Partners subsequently entering the fray.
Bain Capital’s revised offer values the company’s shares at a 3.8% premium to their last closing price of A$4.43 apiece.
This represents an improvement over Bain’s previous non-binding indicative proposal of A$4.30 cash per share, which translates to a 7% increase.
Earlier this month, CC Capital Partners had upped the ante with a rival bid, seeking to gain a foothold in Australia’s lucrative A$4.1 trillion superannuation system, a prize that has driven the intense bidding competition between the two suitors.
Meanwhile, Insignia has offered to provide Bain Capital with a limited period of access to certain non-public information on a non-exclusive basis.
A similar offer was made to CC Capital Partners earlier this week, as the wealth manager seeks to encourage both bidders to potentially improve their offers.
“The provision of limited due diligence does not guarantee that the Bain second revised indicative proposal will result in a binding offer or one that is capable of being recommended by the Board of Insignia Financial,” the company clarified.
Insignia Financial’s funds under management and administration surged by A$7.2 billion to A$326.8 billion as of Dec. 31, underscoring the strong investor appetite for Australian-listed wealth managers with growing asset bases.
($1 = 1.5949 Australian dollars)
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