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PE bidder exits Insignia acquisition battle
Insignia Financial has announced the status of the two private equity bidders as due diligence comes to an end.
Due diligence comes to an end tomorrow (15 May), having been extended by a month from the original deadline.
Both CC Capital and Bain Capital had initially made bids of $5 per share to acquire the company.
However, the volatile market environment has left one bidder opting to exit the process.
In a statement to the ASX, Insignia said: “Bain has informed Insignia Financial that it will be unable to proceed at this time with making a binding offer for the company, due to the macro uncertainty caused by the volatility in global capital markets.
“Insignia Financial remains in discussions with CC Capital, which has advised that it continues to actively work towards making a binding bid for the company over the coming weeks.
“There is no certainty that the ongoing discussions will result in any transaction being put to Insignia Financial shareholders for their consideration.”
During the due diligence process, the firm was also hit by a cyber attack which affected a small number of members on its Expand platform.
It is understood this was a co-ordinated cyber attack that affected Insignia, as well as superannuation funds AustralianSuper, Australian Retirement Trust, Hostplus, and Rest.
Insignia confirmed the incident affected around 100 Expand accounts and said there had been no financial impact on its members. It described the incident as conducted by a “malicious third-party” that involved “credential stuffing”, where an unusual number of login attempts targeted the platform.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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