KKR-backed consortium agrees $5.5bn take-private of Australian insurance broker steadfast
Steadfast Group has agreed to a AUD7.7bn ($5.5bn) takeover by a consortium backed by KKR, in one of the latest major Australian public-to-private transactions targeting the country's financial services sector, according to report by Reuters.
Australian insurance broker Steadfast Group has reached a AUD7.7bn ($5.5bn) takeover agreement with a consortium led by investment firm KKR. The deal, disclosed by Reuters, involves specialty insurance distributor Amwins Group acquiring Steadfast's underwriting agency operations, while Dragoneer Investment Group will take control of the company's broking business.
Shareholders of Steadfast will receive AUD6 per share in cash, representing a 52% premium over the company's closing share price on June 9. The transaction has received unanimous approval from Steadfast's board, pending an independent assessment confirming its benefit to shareholders and ensuring no better offer emerges. Implementation of the scheme is expected to occur in December.
Steadfast's share price had experienced significant volatility, with CEO Robert Kelly temporarily stepping down following an external investigation into a workplace complaint in October, which caused shares to plummet to their lowest level in nearly three years. However, the stock has since rebounded, rising over 40% since June 9.
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