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Brookfield triggers three-way bidding war for Insignia with $1.92 bln offer
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Brookfield triggers three-way bidding war for Insignia with $1.92 bln offer
Feb 4, 2025 4:48 PM

Feb 5 (Reuters) - Insignia Financial ( IOOFF ) said on

Wednesday it had received an A$3.07 billion ($1.92 billion) bid

from Canadian firm Brookfield, matching the latest

offers from Bain Capital and CC Capital Partners for the

Australian wealth manager.

The takeover offer is the latest among efforts by global

firms to tap into Australia's lucrative A$4.1 trillion

superannuation system.

Brookfield has offered to buy Insignia for A$4.60 per share,

the Australian wealth manager said in a statement, representing

a 6.5% premium to the stock's last close on Tuesday.

Shares of Insignia, which have soared more than 21% so far

this year, were up 5.6% at A$4.56 in early trade, but trading

below Brookfield's offer price. The benchmark stock index

was up 0.6%.

The Brookfield offer has triggered a three-way bidding war

for Insignia, with U.S.-based Bain Capital and CC Capital

Partners having already raised their bids to $1.92 billion last

month.

Insignia received an initial takeover approach from private

equity firm Bain Capital in December. The Australian firm

rejected the offer, saying it did not provide fair value to its

shareholders.

CC Capital entered the scene in early January offering a

higher price for Insignia.

Bain, CC Capital and Brookfield did not immediately respond

to Reuters' requests for comment.

Insignia has granted Brookfield limited due diligence to

determine if an improved offer can be formulated, the company

said. It had already granted limited due diligence to Bain and

CC Capital.

Insignia shareholders do not need to take an action

regarding the Brookfield offer, the company said.

($1 = 1.5995 Australian dollars)

(Reporting by John Biju in Bengaluru; Editing by Mohammed Safi

Shamsi and Subhranshu Sahu)

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