Amwins and Dragoneer Consortium Reaffirm $5.3B Bid for Australia’s Steadfast

Australia’s Steadfast said on Thursday that Amwins Group and Dragoneer Investment had reaffirmed their takeover proposal valuing the insurance broker at A$7.7 billion ($5.34 billion), prompting a four-week extension of the exclusivity period.

Here are some details:

• The consortium reaffirmed its offer of A$6 per share, which values the Sydney-headquartered firm at an enterprise value of A$7.7 billion.
• The offer price represents a 52% premium to the last closing price before the original proposal was tabled.
• The current bid marks the third and highest approach after earlier offers of A$5.50 and A$5.83 per share failed to secure an agreement.
• Under the proposed transaction, Amwins, an insurance distributor, will acquire Steadfast’s underwriting agency operations, while U.S.-based Dragoneer Investment will take control of the retail brokerage business.
• Shares of the firm marginally rose 0.4% to A$5.17 in the early hours of trading, while the broader ASX 200 index .AXJO was down 0.8%.

($1 = 1.4426 Australian dollars)

(Reporting by Kumar Tanishk in Bengaluru; editing by Rashmi Aich)

Related:

• Australia Insurance Broker Steadfast Gets Offer From Amwins, PE Firm Dragoneer