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Dai-ichi Life eyes Challenger takeover bid
19 Oct
Summary
- Dai-ichi Life submitted a takeover proposal for Challenger.
- The offer values Challenger at A$7.94 billion ($5.53 billion).
- The bid represents a 19.8% premium over Challenger's last close.
TAL Daiichi Life Australia Pty, a subsidiary of Japan's Dai-ichi Life, has put forward an indicative proposal to acquire the remaining 79% of Challenger shares it does not already own. This move values the Australian investment manager at A$7.94 billion, equivalent to $5.53 billion.
The proposed acquisition price is A$11.80 per share, which signifies a substantial 19.8% premium compared to Challenger's closing price on the preceding Friday. TAL Daiichi Life Australia currently holds a 20.36% stake in Challenger.
Challenger's board has acknowledged receipt of the proposal and is in the process of evaluating it. The takeover bid is contingent upon several conditions, including the satisfactory completion of due diligence by the potential acquirer.
