US-based private investment firm Bain Capital has increased its non-binding offer for Australian wealth manager Insignia Financial to A$2.87bn ($1.76bn).
In December last year, Bain Capital made an initial proposal of A$4 per share for Insignia, totalling A$2.67bn, matching the proposal by CC Capital Partners last week.
Insignia rejected Bain Capital’s initial offer, citing that the offer price undervalued the company.
The US-based investment company increased its offer price to A$4.30 per share, a 7.5% premium to its original non-binding proposal.
Insignia Financial in its statement said: “Bain Capital has also noted in its Revised Indicative Proposal that it is open to discussing a transaction structure that would provide Insignia Financial shareholders with an opportunity to receive a proportion of their total consideration as scrip consideration in the ultimate Bain Capital- controlled holding entity of Insignia Financial.
“The Revised Indicative Proposal is otherwise subject to the same terms and the same conditions as the Initial Bain Proposal.
“The Board of Insignia Financial, together with its financial and legal advisers, is considering the Revised Indicative Proposal in parallel with its consideration of the CC Capital Proposal.
“There is no certainty that either proposal will result in a binding offer or that any transaction will eventuate.”
Insignia Financial provides financial advice, superannuation, wrap platforms and asset management services to members, financial advisors, and corporate employers.
Citigroup and Gresham Advisory Partners are serving as financial advisors and King & Wood Mallesons as legal advisors to Insignia Financial on the transaction.
In July last year, Bain Capital agreed to acquire wealth technology platform provider Envestnet for $4.5bn.
Under the agreement, shareholders of Envestnet, which is listed on the New York Stock Exchange (NYSE), will receive $63.15 in cash for each share of common stock they hold.
Reverence Capital Partners and other partners, Fidelity Investments, BlackRock, Franklin Templeton, and State Street Global Advisors have agreed to invest in the transaction.
