Insignia Financial has issued an ASX release this morning providing an update on its discussions with CC Capital Partners.
In March, the company announced it had received revised, non-binding and indicative proposals from both Bain Capital and CC Capital Partners and was entering into an exclusivity deed with both bidders, having deemed it in the best interests of its shareholders. Bain Capital later withdrew from the acquisition.
Insignia Financial has remained in discussions with CC Capital, with CC Capital indicating that it is continuing to actively work towards making a big for Insignia Financial.
“Specifically, CC Capital is finalising financing and investment committee approvals, a process that is expected to be completed in the next two weeks,” the ASX statement said.
Insignia Financial said there is no certainty that the ongoing discussions will result in any transaction being put to Insignia Financial shareholders for their consideration.
“Insignia Financial will continue to keep the market informed in accordance with its continuous disclosure obligations,” it said.
CC Capital previously made a bid priced at $5 per share for Insignia Financial. However, Morningstar forecast in May that the bid could be revised lower given that there was a lack of competing bidders after the withdrawal of Bain Capital from the acquisition process.
“The $5 per share big price is an attractive price for shareholders. It realises value sooner and avoids the operational challenges Insignia faces to improve,” it said.
The research house also previously noted that the volatility caused by US President Donald Trump’s tariffs, as referenced by Bain Capital, presented a tough backdrop for asset management firms widely.
As well as Insignia, it was also likely to affect Magellan, Platinum, GQG and Perpetual.
“The earnings impact from tariff uncertainties should be bearable this fiscal year but fully felt in fiscal 2026. As rate cuts are priced in and volatility rises, we expect business wins to slow down, with fee compression and growth investments restraining earnings growth,” Morningstar said.
