Key facts
- Steadfast Group has agreed to a takeover offer valued at A$7.7 billion ($5.51 billion).
- The offer comes from a U.S. consortium backed by investment firm KKR.
- Amwins Group will acquire Steadfast's underwriting agency operations.
- Dragoneer Investment will acquire Steadfast's broking business.
- Steadfast shareholders will receive A$6 per share, a 51.9% premium to the June 9 closing price.
- The Steadfast board has unanimously recommended the deal.
Australian insurance broker Steadfast Group has agreed to a takeover offer valued at A$7.7 billion ($5.51 billion) from a U.S. consortium backed by investment firm KKR. The deal will see insurance distributor Amwins Group acquire Steadfast's underwriting agency operations, while U.S.-based Dragoneer Investment will take over its broking business.
Steadfast shareholders are set to receive A$6 per share, which represents a 51.9% premium compared to the stock's closing price on June 9. The Sydney-based company's board has unanimously recommended that shareholders vote in favor of the scheme, provided no superior proposal emerges and an independent expert deems the deal to be in shareholders' best interests.
The company is targeting the implementation of the scheme in December. The consortium's confirmation of the bid follows weeks of due diligence.