Investing.com-- Shares of Insignia Financial Ltd (ASX:IFL) hit their highest since October 2021 after the company received a sweetened takeover bid from U.S.-based private equity firm CC Capital Partners (WA:CPAP), surpassing a revised offer from Bain Capital.
CC Capital's revised non-binding proposal of A$4.60 per share values the Australian wealth manager at A$3.08 billion ($1.91 billion), representing a 7% premium to its initial proposal and Bain's sweetened offer.
Shares of the company rose nearly 5% at open to A$4.36, their highest level in roughly 39 months.
This development intensifies the bidding war for Insignia, which manages A$319.6 billion in funds.
Bain Capital initially offered A$4.00 per share in December 2024, an offer that Insignia's board rejected, stating that it did not adequately represent fair value for shareholders.
In response to CC Capital's higher bid, Bain matched the A$4.30 per share offer, indicating a strong interest in acquiring Insignia.
The latest A$4.60 per share bid from CC Capital underscores the attractiveness of Australia's A$4.1 trillion superannuation system, one of the world's largest private pension markets.
Insignia's board is evaluating both proposals to determine the best course of action for its shareholders.