ASX-listed Insignia Financial Ltd. (AU:IFL) received a counter takeover offer of AU$3.07 billion ($1.91 billion) from CC Capital, striking out Bain Capital’s previous offer. Following the announcement, IFL stock gained 6.5% on Friday. Notably, IFL stock has gained over 20% since Bain Capital made its first offer for Insignia in December, followed by the ongoing bidding war with CC Capital.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
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.
Bidding War Intensifies for Insignia
With its new AU$4.60 cash per share offer, CC Capital has further intensified the bidding war with Bain Capital. This latest bid represents a 7% premium over its previous offer and Bain’s AU$4.30 per share offer made earlier this month. Bain Capital raised its offer by 7% to AU$4.30 per share, up from AU$4.00 in December. However, Insignia rejected the proposal, stating it didn’t reflect the company’s fair value.
Meanwhile, the latest offer of AU$4.60 per share marks a premium of 10.6% over Insignia’s last closing share price.
According to its latest announcement, Insignia is reviewing the revised proposal from CC Capital. The company further mentioned that there is no guarantee that the proposal will lead to a binding offer.
The Battle for Insignia
Interestingly, Grady Wulff, market analyst at Bell Direct, pointed out that CC Capital’s response was expected, given their strong push to acquire Insignia Financial. He believes Bain Capital will likely react, possibly by matching CC’s new offer.
It is worth noting that Bain has been a prominent player in Australian investment circles, while CC Capital is pursuing its first Australian acquisition with Insignia.
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$3.68, which is 17% below the current level.
