Insignia Financial (ASX:IFL) has rejected an indicative, non-binding takeover proposal from Bain Capital, saying the offer did not reflect the fundamental value of the company.
The proposal, announced on December 13, 2024, aimed to acquire 100% of Insignia’s shares via a plan of arrangement. Insignia’s board, after consulting with financial advisors Citigroup and Gresham Advisory Partners, as well as legal advisor 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 chosen not to engage further with Bain Capital regarding the proposal. Shareholders have been informed that no action is required on their part.
Insignia, with roots dating back to 1846, is a wealth manager providing financial advice, pensions, global platforms and asset management services to individual investors, financial advisors and businesses.
The company did not disclose how the valuation was lower than expected.
Insignia shares are trading down 0.28% at $3.59.
