Daiichi Life unit submits bid to acquire Challenger valued at A$7.94 billion — Channel NewsAsia

Australian investment management company Challenger has received an indicative proposal from a unit of Japanese insurance group Daiichi Life to acquire more than 79% of shares that the buyer does not yet own. The proposal values Challenger at A$7.94 billion, or $5.53 billion, Channel NewsAsia reports, citing Reuters.

Offer price

TAL Daiichi Life Australia Pty, a unit of Daiichi Life, offered A$11.80 per Challenger share. This is 19.8% higher than the closing price of the Australian company's shares last Friday.

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According to LSEG, TAL Daiichi Life Australia Pty already owns 20.36% of Challenger shares. Therefore, the offer concerns the remaining stake that the Daiichi Life unit does not yet own.

Offer terms

Challenger said that the takeover proposal depends on meeting a number of conditions, including the satisfactory completion of due diligence on the company. Challenger's board of directors is considering the indicative proposal.