At the end of last year, the firm received a bid from US private equity giant Bain Capital to acquire 100 per cent of the company. This was later rejected by the board.
It has since announced that the firm received a confidential, non-binding and indicative proposal from New York-based firm CC Capital Partners.
This would be to acquire all of the shares in Insignia Financial by way of a scheme of arrangement at a price of $4.30 cash per share. The $4.30 offer is 7.5 per cent higher than the $4.00 originally offered by Bain Capital.
The 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 scheme implementation agreement, if entered into, would be conditional on (among other things) a unanimous recommendation from the Insignia Financial 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 Insignia’s shareholders, and approval from CC Capital’s investment committee.
Insignia said it is “considering the proposal” to assess if it is in the best interest of shareholders and that there is no certainty that it will result in a transaction proceeding.
