Insignia Financial revealed on Friday it has received revised, non-binding, and indicative proposals from both Bain Capital and CC Capital Partners, after last month revealing due diligence processes had been completed.
In an ASX listing on Friday, the company said both bidders have separately and independently submitted increased proposals at a price of $5.00 cash per share, above the $4.60 per share they initially offered.
Insignia is now entering into an exclusivity deed with both Bain and CC Capital, having deemed it in the best interests of its shareholders.
“The IFL Board will provide both parties access to confirmatory due diligence that is expected to be completed within six weeks,” it said.
The cash consideration under each proposal offers a 63 per cent premium over the closing price of Insignia Financial shares on 11 December 2024, which was $3.06, the last trading day before the announcement of Bain’s proposal.
Additionally, the offers represent a 56 per cent premium to the volume-weighted average price of Insignia Financial shares for the month leading up to and including 11 December 2024, and a 77 per cent premium to the volume-weighted average price for the three months ending on that same date.
The upgraded bid for Insignia has raised the value of the financial services firm from $3 billion to $3.3 billion. Moreover, the firm’s share price was up around 9 per cent on Friday, taking its share price gains in the calendar year to date to above 32 per cent.
Last month, Insignia revealed Bain Capital, Brookfield and CC Capital all received access to limited due diligence after lodging matching bids.
Following the firm’s ASX filing of its first half results, Insignia Financial’s chief executive, Scott Hartley, said due diligence processes had been completed and the firm had fielded additional questions from each of the three bidders.
“We are now awaiting their reconsideration of the offer,” Hartley said at the time.
“There is no timeline on that, that’s in their hands now. We would like to see the process be expedited, but I would say we are close to done with the first phase of due diligence.”
In its half-year results presentation, Insignia announced a statutory net loss after tax of $17 million, an improvement from a loss of $50 million in the prior corresponding period thanks to cost optimisation measures.
Average funds under management and administration increased by $25 billion to $320 billion, an increase of 8.6 per cent, while net revenue edged up 1.5 per cent driven by strong markets.
