Key facts
- Amwins Group and Dragoneer Investment Group reaffirmed their takeover proposal for Steadfast.
- The offer values Steadfast at A$7.7 billion ($5.34 billion) at A$6 per share.
- The exclusivity period has been extended by four weeks.
- The deal would split Steadfast's operations, with Amwins acquiring underwriting agencies and Dragoneer taking the retail brokerage business.
- Steadfast's board intends to recommend the deal to shareholders.
Steadfast Group has announced that Amwins Group and Dragoneer Investment Group have reaffirmed their takeover proposal, valuing the Australian insurance broker at A$7.7 billion ($5.34 billion). This reaffirmation has led to a four-week extension of the exclusivity period granted to the consortium.
The consortium's offer of A$6 per share represents a significant 52% premium over Steadfast's last closing price before the initial proposal. This latest bid is the third and highest approach from the US-based entities, following earlier offers of A$5.50 and A$5.83 per share that did not result in an agreement.
Under the terms of the proposed transaction, the structure involves a division of Steadfast's operations. Amwins, an insurance distributor, is set to acquire the company's underwriting agency businesses, while Dragoneer Investment will take control of the retail brokerage segment. This carve-up is considered the most significant aspect of the deal for Australia's insurance broking community.
Steadfast's board has indicated its intention to unanimously recommend that shareholders vote in favor of the transaction, provided certain conditions are met, including the absence of a superior proposal and a favorable conclusion from an independent expert. The company's shares saw a marginal increase of 0.4% to A$5.17 in early trading, while the broader ASX 200 index experienced a decline of 0.8%.