ASX-listed Insignia Financial Ltd. (AU:IFL) revealed that Bain Capital has raised its takeover offer to AU$2.9 billion ($1.8 billion), heating the bidding war with CC Capital for the Australian company. According to the company’s update, Bain Capital increased its offer by around 7% to AU$4.30 cash per share, up from its previous offer of AU$4.0 per share in December. The new offer matches the one made by CC Capital Partners earlier this month. Following the announcement, IFL stock gained over 2% as of writing.
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Insignia is a financial services company that provides a range of solutions to Australians. Meanwhile, Bain Capital and CC Capital Partners are private investment firms in the U.S.
Bain Challenges CC Capital for Insignia
With this new offer, Bain has stepped up to challenge CC Capital for the takeover of Insignia. This came after Insignia rejected Bain’s previous proposal, asserting that it failed to represent the company’s fair value for its shareholders accurately. The new offer from Bain is also 4.4% higher than Insignia’s most recent closing price of A$4.12.
In its revised proposal, Bain Capital said it is open to discussing a deal where Insignia Financial shareholders could receive part of their payment in shares of the Bain Capital-controlled company holding Insignia Financial.
Meanwhile, Insignia stated that it is reviewing the revised indicative proposal while evaluating the CC Capital proposal. The company further mentioned that there is no guarantee that either proposal will lead to a binding offer.
Is Insignia Financial a Good Buy?
According to the consensus among analysts on TipRanks, IFL stock has been assigned a Hold rating. This is based on two Buy, three Hold, and one Sell recommendations. The Insignia Financial share price target is AU$3.37, which is 20.16% below the current level.
