Steadfast Group accepts A$7.7 billion takeover offer

Investing.com -- Steadfast Group reached an agreement Friday with a consortium backed by Dragoneer Investment Group and KKR for a takeover valued at approximately A$7.7 billion ($5.51 billion).

Starboard BidCo will acquire all Steadfast shares for A$6 each in cash under the scheme implementation deed, less any permitted dividends paid before the deal closes, according to a stock market filing.

After the deal completes, Amwins Australasia will acquire Steadfast's underwriting agency business segment, while the bidder will retain ownership of the broking business segment, the company said.

The offer represents a 51.9% premium to Steadfast's undisturbed closing price of A$3.95 on June 9, the last trading day before the company disclosed it had received a non-binding proposal from Dragoneer and Amwins. Steadfast may pay shareholders a final 2026 fiscal year dividend and a special dividend of up to A$0.20 per share before implementation.

Steadfast received the initial proposal from Amwins and Dragoneer in June. KKR joined the bidding consortium a month later.

The board unanimously recommended shareholders vote for the transaction, subject to no superior proposal emerging and an independent expert continuing to find the deal is in shareholders' best interests.

The deal requires shareholder and court approval, as well as clearances from regulators including Australia's Foreign Investment Review Board and competition regulator. It also requires approvals from authorities in New Zealand, Britain and Singapore.

The transaction is not subject to financing conditions. The bidder will fund the acquisition through equity commitments from funds managed or advised by Dragoneer and KKR, commitments from Amwins and third-party debt financing.

Sydney-based Steadfast operates insurance broker and agency networks in Australia, New Zealand, Singapore and the United States. Its network places about A$25 billion in gross written premiums annually.

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