Challenger receives buyout offer worth $11.80 per share

• Challenger received a non-binding acquisition offer to purchase all remaining ordinary shares.
• The cash offer of $11.80 per share represents a 17.7% premium over the one-month volume-weighted average price of $10.03.
• TAL Dai-ichi Life Australia aims to expand its ownership from 20.5% to 100% via a scheme of arrangement.

Challenger (ASX:CGF) has received a non-binding indicative takeover proposal from TAL Dai-ichi Life Australia to acquire the remaining 79.5% of ordinary shares it does not already own at $11.80 per share.

The proposed acquisition price of $11.80 per share represents a 17.7% premium compared to the company's one-month volume-weighted average price of $10.03.

The company stated that the board of Challenger is currently considering the indicative proposal while advising shareholders that no action is required and there is no certainty a binding deal will eventuate.

The transaction remains subject to several conditions, including the satisfactory completion of due diligence, formal agreement on acceptable terms, regulatory approvals, and a final board recommendation.

Following the announcement, the Challenger share price was unchanged at $9.85.

Founded in 1985, the company operates an APRA-regulated life insurance business focused on converting accumulated savings into retirement income.