Australia-based Insignia Financial announced it received an A$2.87 billion ($1.78 billion) takeover bid from CC Capital Partners, which was higher than an A$2.67 billion offer from Bain Capital. This deal would give CC Capital access to a $A4.1 trillion superannuation system. This is considered one of the largest private pension markets in the world.
Insignia (previously known as IOOF) had rejected Bain Capital’s offer in December and claimed it was not of fair value to shareholders.
“The Indicative 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 (amongst other things) a unanimous recommendation from the Insignia Financial Board of 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 IFL shareholders) and approval from CC Capital’s investment committee,” said Insignia in a statement. “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 CC Capital. There is no certainty that the Indicative Proposal will result in a binding offer or that any transaction will eventuate.”
Chinh Chu originally started CC Capital. Chu was Blackstone’s former co-head of private equity.
Insignia had A$319.6 billion of funds under management as of September.
