Bain Capital raises bid for Australia’s Insignia to $1.8 billion, matches CC Capital

By Rajasik Mukherjee

(Reuters) -Shares of Australia’s Insignia Monetary hit a greater than three-year excessive on Monday as a bidding warfare escalated, with personal fairness agency Bain Capital elevating its provide to A$2.87 billion ($1.76 billion), in step with rival CC Capital’s bid.

Underneath the provide, Insignia shareholders will obtain A$4.30 per share, a 7.5% premium to Bain Capital’s earlier provide and a 4.4% premium to Insignia’s final closing worth of A$4.120.

Shares of the 178-year-old Australian wealth supervisor, which supplies superannuation, monetary recommendation and asset administration providers, gained as a lot as 3.2% to A$4.250, hitting their highest ranges since Oct. 28, 2021.

Final week, U.S.-based funding supervisor CC Capital Companions (WA:CPAP) provided to purchase Insignia for A$2.87 billion, days after the Australian firm rejected Bain Capital’s preliminary takeover bid, citing it didn’t present honest worth to shareholders.

“I see the bidding warfare is in early days and we are going to probably see CC Capital reply to Bain’s elevated bid within the close to future … It’ll be a really tight race,” stated Grady Wulff, market analyst at on-line share commerce platform Bell Direct.

CC Capital didn’t instantly reply to a request for remark.

Bain’s counter provide has escalated 2025’s first bidding warfare for an Australian agency. Final 12 months was an intensely busy 12 months for the Australian dealmakers as M&A exercise was value $113.4 billion in 2024, based on LSEG information, up 15% from 2023 ranges.

The Australian wealth supervisor stated that beneath the revised provide, Bain Capital would additionally permit Insignia shareholders an choice to obtain a part of the overall buy worth as scrip within the new entity.

Bain Capital’s revised provide displays a robust sense of investor urge for food for Australia-listed wealth managers whose asset bases have grown strongly.

The deal would give entry to Australia’s A$4.1 trillion superannuation system, which is taken into account one of many world’s largest personal pension markets.

($1 = 1.6279 Australian {dollars})