Daiichi Life Group Inc. has offered to buy the remainder of Challenger Ltd. that it does not already own, in a takeover bid that values the Australian firm at around A$7.9 billion ($5.5 billion).
Challenger received an indicative offer from TAL Daiichi Life Australia Pty, a unit of Daiichi Life, to acquire the remaining 79.5% of Challenger shares at A$11.80 per share, according to a statement Monday. The price is about 20% higher than Friday's closing price and values the offer for the stake Daiichi Life does not already own at about A$6.3 billion.
Established in 1985, Challenger is a Sydney-listed investment management company with around A$128 billion in assets, according to its website. Challenger Life is Australia's largest provider of annuities, and the company says it aims to provide customers with financial security for a better retirement.
Daiichi Life is a major Japanese insurance firm based in Tokyo, with a business spanning Asia Pacific and North America and operations in nine countries, according to its website. Challenger's board is currently considering the offer, and the statement said there is no certainty the proposal will result in a binding offer or that any transaction will eventuate.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing