Australian insurance broker Steadfast Group said on Friday it has agreed to a A$7.7 billion ($5.51 billion) takeover offer by a U.S. consortium backed by investment firm KKR.
As part of the proposal, insurance distributor Amwins Group will acquire Steadfast’s underwriting agency operations, while U.S.-based Dragoneer Investment will take over its broking business.
Steadfast shareholders, as previously announced, will receive A$6 apiece, representing a 51.9% premium since the stock’s closing on June 9 — the last trading day before the company disclosed it had received a non-binding proposal from Dragoneer and Amwins.
The Sydney-based company’s board has unanimously recommended that shareholders vote in favor of the scheme, in the absence of a superior proposal and subject to an independent expert concluding the deal is in shareholders’ best interests.
Steadfast is currently targeting to implement the scheme in December, it said in an exchange filing after market hours.
($1 = 1.3968 Australian dollars)
(Reporting by Nikita Maria Jino in Bengaluru; editing by Harikrishnan Nair and Shilpi Majumdar)
Related:
Topics Australia
Was this article valuable?
Here are more articles you may enjoy.
At-Bay to Be Acquired by Munich Re for $575 Million 
11 New Firms Join Insurance Journal’s Top 100 Independent Agencies 
State Farm Must Give Up Trade Secrets in Claims Lawsuits, but Under Court Review 
The Great Modern Train Robbery: Thieves Steal $200 Million a Year 
