Steadfast Extends Due Diligence for $7.7 Bn Takeover Proposal
Synopsis
Key Highlights Steadfast Amwins Dragoneer due diligence extended by another four weeks under the exclusivity deed. The consortium again confirmed its desire to move ahead with the $7.7 billion acquisition of Steadfast. The proposal…
Key Highlights
- Steadfast Amwins Dragoneer due diligence extended by another four weeks under the exclusivity deed.
- The consortium again confirmed its desire to move ahead with the $7.7 billion acquisition of Steadfast.
- The proposal equates to a $6.00 per share valuation for Steadfast, or a 51.9% premium to the closing share price before the approach announcement.
Steadfast Amwins Dragoneer due diligence extended after Steadfast Group Board announced extension of exclusivity period granted to Amwins Group and Dragoneer Investment Group.
The consortium has reconfirmed its intention to proceed with a proposed $7.7 billion acquisition of Steadfast priced at $6.00 per share, reflecting a 51.9% premium to the last close on the respective day prior to the first proposal being made to Steadfast shareholders. Steadfast made the revelation in an ASX filing.
Exclusivity Period Extended
Steadfast exclusivity deed extension, follows a four-week extension, securing the consortium with extra time to complete investment review after it was granted an original due diligence period on 10 June.
The initial $6 per share proposal for Steadfast was submitted in June from insurance distributor Amwins and investment firm Dragoneer, after both earlier non-binding indicative bids of $5.50 and alongside comparables at $5.83 per share. Last Thursday, Steadfast shares closed at $5.15.
No Certainty Transaction Will Proceed
The company said in a Steadfast Group SDF takeover update that it cannot assure that a binding agreement will be entered into with the consortium. However, Steadfast also said that the proposal may not culminate in a transaction.
Source: Capital Brief
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