Insignia keen on higher CC, Bain $3.35bn bidsValerina...

Insignia keen on higher CC, Bain $3.35bn bids

Valerina Changarathil

Takeover target Insignia (IFL) has recieved matching higher offers from two suitors, Bain Capital and CC Capital as the battle for control of the wealth manager intensifies while, as reported by DataRoom, third contender Brookfield appears to have bowed out.

The improved $5 per share offer, $3.35bn has led to Insignia’s board allowing the continuation of ongoing diligence by both parties.

CC Capital, Brookfield and Bain Capital had been carrying out due diligence on the company for a potential buyout after offering $4.60 per share, or $3.08bn.

But CC and Bain now have an exclusivity deed to progress their proposals and have access to confirmatory due diligence, which is likely to be completed in six weeks.

Any transaction would, if entered into by IFL, be subject to approval of the Australian Prudential Regulation Authority, the Foreign Investment Review Board, and ultimately IFL’s shareholders
There is no certainty that either proposal will result in any transaction being put to Insignia Financial shareholders for their consideration.

Among Insignia’s shareholders is John Wylie’s Tanarra Capital, who holds about 14 per cent.

Bain Capital, which is being aided by former Insignia boss Renato Mota, is advised by Bank of America, CC Capital, Deutsche Bank and Brookfield, Jarden. Insignia is advised by Citi and Gresham.