Challenger rejects non-binding takeover bid of $11.80
Key points
- Challenger rejected an indicative acquisition proposal from TAL Daiichi Life Australia.
- The target share price for the proposed cash takeover was set at $11.80 per share.
- Challenger intends to negotiate to determine if an acceptable proposal can be reached.
The board of Challenger (ASX:CGF) has formally rejected a non-binding acquisition proposal of $11.80 per share from its largest shareholder.
The proposal follows an initial non-binding offer made on Oct. 19 by TAL Daiichi Life Australia to acquire all remaining shares.
The board stated that the offer was not at a level it could recommend to shareholders.
The board added that it intends to engage with TAL Daiichi Life Australia to determine whether a recommendable proposal can be reached.
Following the announcement, the Challenger share price was unchanged at $11.92.
The rejected offer valued the remaining 79.5% stake in the Australian financial services firm at approximately $7.94 billion.
The company also recently reported a 52% increase in total quarterly sales to $4.4 billion alongside a $300 million share buyback programme.
