Story
Steadfast Extends Exclusivity Period After US Consortium Reaffirms A$7.7 Billion Bid
Summary
Australian insurance broker Steadfast has granted a four-week extension to a U.S. consortium after it reaffirmed its takeover proposal valuing the company at A$7.7 billion ($5.34 billion). The consortium includes Amwins Group and Dragoneer Investment.
Australian insurance brokerage firm Steadfast announced it has extended an exclusivity period by four weeks for a U.S. consortium consisting of Amwins Group and Dragoneer Investment. The extension follows the consortium's reaffirmation of its takeover bid, which values the Sydney-based company at an enterprise value of A$7.7 billion ($5.34 billion).
The offer remains at A$6 per share, which represents a 52% premium to Steadfast's closing price before the initial proposal was made. This is the third and highest offer from the consortium, after previous bids of A$5.50 and A$5.83 per share did not result in an agreement.
Under the terms of the proposed transaction, the two U.S. firms would divide Steadfast's operations. Amwins, a specialty insurance distributor, is set to acquire Steadfast’s underwriting agency businesses, while investment firm Dragoneer would take control of the retail brokerage division.
AdFollowing the announcement, shares of Steadfast saw a marginal increase of 0.4% to A$5.17 in early trading, while the broader ASX 200 index was down 0.8%.