Challenger warns no guarantee of takeover deal
Key points
- Challenger cautions that a binding buyout agreement from major shareholder TAL Daiichi Life Australia is not certain to occur.
- The company share price traded at $12 following updates regarding the ongoing acquisition discussions.
- Management continues dialogue to determine if an acceptable proposal can be reached for investors.
Challenger (ASX:CGF) Chairman Duncan West informed investors that no certainty exists that a binding offer or transaction will emerge from the takeover proposal received from TAL Daiichi Life Australia.
TAL Daiichi previously offered to acquire the remaining 79.5% of ordinary shares in Challenger at a price of $11.80 per share.
"There is no certainty that a binding offer or any transaction will result, and shareholders do not need to take any action at this time," stated Challenger Chairman Duncan West.
The annuities provider rejected the initial bid earlier in the week because the board concluded the valuation was insufficient to recommend to shareholders.
Following the announcement, the Challenger share price was up at $12.00.
The company operates as Australia's largest provider of annuities within the nation's retirement savings market.
Management routinely evaluates capital management strategies and commercial partnerships to support its long-term financial objectives.
Frequently asked questions
More from Australia
Lynas Rare Earths posts record $310.1M quarterly revenue
Australian physical energy exports hit 10-year low
Resolute Mining posts 44,398 ounces in gold output
Australian Mines proposes rebranding as First Scandium
ASIC makes targeted inquiries into Firmus bankers
Mamba Exploration begins drilling at Meeka East Gold Project
