Daiichi Life unit makes A$7.94b bid for rest of Australian fund manager Challenger

TAL Daiichi Life Australia Pty, a unit of Japan's Daiichi Life, has submitted an indicative proposal to buy the 79 per cent of Australian investment manager Challenger it does not already own, valuing the company at A$7.94 billion. The offer of A$11.80 per share represents a 19.8 per cent premium to

TAL Daiichi Life Australia Pty, a unit of Japan's Daiichi Life, has submitted an indicative proposal to acquire the approximately 79 per cent of Australian investment manager Challenger that it does not already own, Challenger announced on Monday. The offer values the company at A$7.94 billion (S$5.53 billion).

Under the proposal, the Japanese insurer is offering A$11.80 apiece, representing a premium of 19.8 per cent from Challenger's closing price on Friday. TAL Daiichi Life Australia already holds 20.36 per cent of the Australian investment manager, according to LSEG data.

The takeover proposal is subject to a number of conditions, including satisfactory completion of due diligence, Challenger stated. “The Board of Challenger is considering the indicative offer,” the Australian firm added in its statement.