Challenger has received a conditional proposal from TAL Daiichi Life Australia for the shares the bidder does not already hold. The suggested price is 11.80 Australian dollars per share and would bring ownership to 100 per cent if implemented. The board is considering the proposal, which still requires due diligence, an agreed implementation contract and regulatory approvals. A binding transaction remains uncertain.
Challenger, an Australian retirement-income business, has received a conditional, non-binding offer from TAL Daiichi Life Australia, a Daiichi Life Group subsidiary. The proposal covers the remaining shares the bidder does not already own and would take its ownership to 100 per cent if implemented. Challenger’s board is considering the proposal; the company says shareholders need take no action at this stage.[1], [2]
The bidder seeks the remaining 79.5 per cent of ordinary shares through a scheme of arrangement at 11.80 Australian dollars each. Challenger compares this with a one-month volume-weighted average price of 10.03 Australian dollars, a premium of 17.7 per cent. The offer arrived after trading closed on 16 October; Challenger made its public announcement on 19 October. The company’s Continuous Disclosure Committee authorised the announcement.[1]
The conditions include satisfactory due diligence, an implementation agreement on acceptable terms, regulatory approvals and a board recommendation. Challenger cautions that a binding offer or completed transaction is uncertain. Founded in 1985, Challenger helps customers turn accumulated savings into retirement income and operates a life insurance company supervised by the Australian Prudential Regulation Authority. It also provides institutional income solutions through credit origination in public and private markets.[1]
