Insignia Financial Ltd (ASX: IFL) shares are pushing higher on Monday.
In morning trade, the ASX 200 financial stock is up 3% to $4.25.
This compares to a 1% decline by the benchmark ASX 200 index.
Image source: Getty Images
Why is this ASX 200 stock outperforming?
Last week, this financial services company received a confidential, non-binding, and indicative proposal from CC Capital Partners.
CC Capital Partners offered to acquire all of the shares in Insignia Financial by way of a scheme of arrangement at a price of $4.30 cash per share. This is subject to the satisfactory completion of due diligence on an exclusive basis and execution of a binding scheme implementation agreement.
The offer from CC Capital Partners represented a 21.4% premium to its last close price and was comfortably ahead of a recently rejected offer of $4.00 per share from Bain Capital.
The ASX 200 stock advised that its board and financial and legal advisers are now considering the indicative proposal to assess whether it is in the best interests of shareholders.
What's the latest?
It seems that a bidding war could be about to break out with Bain Capital returning with an improved offer this morning.
According to the release, Insignia Financial has received a revised non-binding and indicative proposal from Bain Capital to acquire all of the shares in Insignia Financial by way of a scheme of arrangement at a price of $4.30 cash per share.
As with the other offers, this will be adjusted for any dividends paid or payable after the date of the proposal.
Bain Capital has also noted in its revised proposal that it is open to discussing a transaction structure that would provide Insignia Financial shareholders with an opportunity to receive a proportion of their total consideration as scrip consideration in the ultimate Bain Capital-controlled holding entity of Insignia Financial.
The ASX 200 stock advised that its board, together with its financial and legal advisers, is considering the proposal in parallel with its consideration of the CC Capital proposal.
Once again, though, it has warned that there is no certainty that either proposal will result in a binding offer or that any transaction will eventuate.
As a result, it advised that shareholders do not need to take any action at this time. Insignia Financial intends to continue to keep the market informed in accordance with its continuous disclosure obligations.
