Insignia Financial has confirmed it has received and is considering a preliminary non-binding proposal from a US private equity giant to acquire the firm.
In an ASX statement, the firm confirmed it has received a confidential, preliminary, non-binding and indicative proposal to acquire all of the shares in Insignia Financial by way of a scheme of arrangement from Bain Capital.
Bain Capital is a US private investment firm specialising in private equity and venture capital, with US$185 billion ($290 billion) in assets under management and offices in Melbourne and Sydney.
Under the proposal, Insignia shareholders would receive $4 cash per share.
“The board of Insignia Financial, together with its financial and legal advisers, is considering the indicative proposal to assess whether it is in the best interests of shareholders to engage with Bain Capital. There is no certainty that the indicative proposal will result in a binding offer or that any transaction will eventuate,” the firm said.
The proposal is expressed to be subject to a number of conditions, including satisfactory completion of due diligence on an exclusive basis, execution of a binding scheme implementation agreement, 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 shareholders) and approval of Bain Capital’s investment committee.
It would also be subject to regulatory approvals.
This is the third major US deal to come to the fore in Australia this year after US private equity firm KKR agreed to acquire the corporate trust and wealth management businesses of Perpetual, and Oaktree Capital Management made a $240 million strategic investment in AZ NGA.
