((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Updated Bain Capital Asia expansion plans in paragraphs 6 and 7, industry context in paragraphs 2, 8 and 10)
Australian firm Insignia Financial IFL.AX has rejected Bain Capital’s A$2.67 billion ($1.69 billion) takeover offer, saying the offer did not provide fair value to its shareholders , creating an obstacle to the buyout giant’s Asian expansion plans.
Earlier this month, Bain had offered A$4 for the 178-year-old wealth management company, reigniting investor appetite for Australian-listed wealth management companies which have recently seen strong growth in their asset base. ‘assets.
However, Insignia declined the Boston-based investment firm’s offer on Wednesday, saying it “does not adequately represent fair value to IFL shareholders.”
After the bid was filed, brokerage Sandstone Insights said a bid of A$4.50 to A$5 per share would attract “more serious consideration from the board.”
Bain Capital has also been active in Japan, making upgraded offers for Fuji Soft 9749.T amid a bidding war with rival KKR KKR.N .
Bain completed the final close of its fifth pan-Asian private equity fund for $7.1 billion in November last year. It also struck a deal to acquire Australian aged care operator Estia Health for A$838 million in August.
KKR’s deal with Australia’s Perpetual PPT.AX, worth A$2.2 billion, is also on hold after a blowout tax bill.
The Australian wealth management industry has recently been subject to mergers and acquisitions. Hedge fund Regal Partners RPL.AX made an offer for Platinum Asset Management in September, but negotiations were unsuccessful.
Insignia rejected Bain Capital’s offer as part of its strategy to restore shareholder confidence, having already faced resistance from activist investor Tanarra Capital.
Bain Capital did not immediately respond to Reuters’ request for comment.
(1 dollar = 1.5785 Australian dollars)
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