Insignia Financial (ASX:IFL) has rejected a non-binding, indicative takeover proposal from Bain Capital, saying that the offer did not reflect the company’s fundamental value.
The proposal, announced on 13 December 2024, sought to acquire 100% of Insignia’s shares via a scheme of arrangement. Insignia’s board, after consulting with financial advisers Citigroup and Gresham Advisory Partners, as well as legal adviser King & Wood Mallesons, concluded that Bain Capital’s offer was not in the best interests of shareholders.
In its statement, the board said the proposed offer “does not adequately represent fair value” in the context of a change of control transaction. As a result, Insignia has opted not to engage further with Bain Capital regarding the proposal. Shareholders have been advised that no action is required on their part.
Insignia, with roots tracing back to 1846, is a wealth manager offering financial advice, superannuation, wrap platforms, and asset management services to individual investors, financial advisers and corporate employers.
The company did not disclose how the valuation fell short of expectations.
Shares in Insignia are trading 0.28% lower at $3.59.