Insignia Financial has confirmed that it has received and is considering a preliminary non-binding proposal from a US private equity giant to acquire the company.
In a statement from the ASX, the company confirmed that it had received a confidential, preliminary, non-binding and indicative proposal to acquire all of the shares of Insignia Financial by way of a plan of arrangement from Bain Capital.
Bain Capital is an American private equity and venture capital investment firm with US$185 billion ($290 billion) in assets under management and offices in Melbourne and Sydney.
Under the proposal, Insignia shareholders would receive $4 in cash per share.
“The board of directors of Insignia Financial, in conjunction with its financial and legal advisors, is reviewing 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 firm offer or that a transaction will be completed,” the firm said.
The proposal is subject to a number of conditions, including satisfactory completion of due diligence on an exclusive basis, execution of a binding program implementation agreement, unanimous recommendation of the directors of Insignia Financial and commitment of all directors to vote in favor 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 the Bain Capital investment committee.
It would also be subject to regulatory approvals.
It is the third major US deal to come to the fore in Australia this year after US private equity firm KKR agreed to acquire Perpetual’s corporate trust and wealth management businesses and Oaktree Capital Management has made a $240 million strategic investment in AZ NGA.
