Bain Capital raises bid for Australia Flagship to $1.8 billion, reports CC Capital By Reuters

(Reuters) – Australia’s Insignia Financial said on Monday that private equity firm Bain Capital had softened its bid for the 178-year-old wealth manager, now valuing it at $2.87 billion ($1.76 billion $), matches the offer of CC Capital as the bidding war. heats up between the two suitors.

Under the offer, Insignia shareholders will receive A$4.30 per share, a 7.5% premium to Bain Capital’s previous offer.

Earlier this year, US-based investment manager CC Equity partners (WA:) offered to buy Insignia for A$2.87 billion, days after Insignia had rejected Bain Capital’s original takeover offer, saying it did not provide fair value to its shareholders.

The Australian wealth manager said that under the revised offer, Bain Capital would also be open to providing Insignia shareholders with an option to receive a portion of the total purchase price as scrip consideration in the ‘last holding entity controlled by Bain Capital of Insignia Financial.

Bain Capital’s revised offer reflects a strong sense of investor appetite for Australian-listed wealth managers whose asset bases have grown significantly.

The deal would give access to the A$4.1 trillion pension system, which is considered one of the largest private pension markets in the world.

CC Capital did not immediately respond to a request for comment.

($1 = 1.6279 Australian dollars)