Australian insurance broker Steadfast announced Thursday that US-based Amwins Group and Dragoneer Investment have stood behind their takeover proposal, placing the company’s value at A$7.7 billion, or approximately $5.34 billion US dollars. The reaffirmation has led to a four-week extension of the exclusivity window for the deal.
The consortium’s offer remains at A$6 per share, which reflects an enterprise value of A$7.7 billion for the Sydney-headquartered firm. That price tag represents a 52% premium above the closing share price recorded before the original proposal was first put forward.
This latest offer is the third time the consortium has come to the table — and the highest bid yet. Two previous attempts, at A$5.50 and A$5.83 per share respectively, were unable to produce an agreement.
If the transaction moves forward, the deal would be structured so that Amwins, an insurance distributor, would take over Steadfast’s underwriting agency operations. Meanwhile, US-based Dragoneer Investment would assume control of the retail brokerage side of the business.
Steadfast shares edged up 0.4% to A$5.17 in early trading Thursday, even as the broader ASX 200 index slipped 0.8%.
(At time of reporting: $1 US = 1.4426 Australian dollars)
