KKR, Dragoneer, And Amwins To Acquire Steadfast Group For A$7.7 Billion
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Steadfast Group has entered into a binding scheme implementation deed for a consortium backed by KKR, Dragoneer Investment Group and Amwins Group to acquire the Australian insurance distribution company in a transaction carrying an enterprise value of approximately A$7.7 billion, or about $5.5 billion according to Insurance Journal . Under the transaction, Steadfast shareholders will receive A$6 per share in cash, less any permitted dividends or distributions paid before implementation. The A$6 offer represents a 51.9% premium to Steadfast's A$3.95 closing share price on June 9, the final trading day before the company disclosed the consortium's initial non-binding acquisition proposal. The agreement follows several months of negotiations. Amwins and Dragoneer initially approached Steadfast with proposals of A$5.50 and A$5.83 per share before increasing their offer to A$6 per share in June. KKR subsequently joined the consortium as a co-lead investment partner alongside Dragoneer for Steadfast's broking operations. The transaction has been structured so that Steadfast's major operating businesses will ultimately be divided between the consortium members. Starboard BidCo, which is backed by Dragoneer and KKR, will acquire all outstanding Steadfast shares through the scheme of arrangement. Following completion, Amwins Australasia will acquire Steadfast's underwriting agency...
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