Japan’s Daiichi Life unit tables offer to take over Australia’s Challenger
The Japanese insurer is offering A$11.80 apiece, representing a premium of 19.8% from Challenger’s last close on Oct 16.
Daiichi Life, a unit of Japan's Daiichi Life, has extended an indicative offer to acquire over 79% of Challenger, an Australian investment manager, which it does not already own. The Japanese insurer is proposing to purchase these shares at A$11.80 each, valuing Challenger at A$7.94 billion. This offer represents a 19.8% premium over Challenger's closing price on October 16.
Challenger's TAL Daiichi Life Australia Pty unit currently holds a 20.36% stake in the Australian investment manager, according to LSEG. The offer is subject to various conditions, including the successful completion of due diligence. Challenger's board is currently evaluating the indicative offer. The company reported a 5% increase in assets under management to $31.9 billion for the first quarter of fiscal 2027, driven by strong sales in both domestic and offshore annuities.
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