Key facts
- Dai-ichi Life unit proposes to buy remaining 79% of Challenger.
- Indicative offer values Challenger at A$7.94 billion ($5.53 billion).
- Offer price of A$11.80 per share represents a 19.8% premium.
- TAL Daiichi Life Australia holds 20.36% of Challenger.
A unit of Japan's Daiichi Life has submitted an indicative proposal to acquire the remaining 79.64% of Australian investment manager Challenger that it does not already own. The offer values the company at A$7.94 billion ($5.53 billion), with the Japanese insurer proposing A$11.80 per share, representing a 19.8% premium to Challenger's closing price on Friday. TAL Daiichi Life Australia Pty, the unit making the offer, currently holds a 20.36% stake in Challenger. The proposal is contingent on satisfactory due diligence and other conditions. Challenger's board is currently reviewing the indicative offer.