AUB Group has confirmed it received an unsolicited, confidential, and non-binding indicative takeover proposal from private equity firm EQT. The proposal, received on September 26, outlines that AUB shareholders would receive $45 per share. This follows a previous proposal made on September 13 to acquire AUB for $43 per share. AUB Group is an insurance broker network operating in Australia and New Zealand. The company provides a range of insurance products and services to businesses and individuals.
The offer price would be reduced by any dividends or other distributions declared or paid by AUB, excluding the 66¢ per share dividend announced as part of AUB’s FY25 results in late August. This condition ensures that any value distributed to shareholders prior to the completion of the potential acquisition is reflected in the final offer price. The structure of the offer allows for adjustments based on AUB’s financial activities leading up to any possible transaction.
AUB Group announced on Tuesday that it would enter a confidentiality and exclusivity agreement with EQT to further assess the proposal. This agreement allows EQT to conduct due diligence and potentially refine its offer. Despite this agreement, AUB Group noted that there is no certainty that the proposal will lead to a definitive transaction.
The AUB board has stated they will assess the merits of the proposal, keeping shareholders informed as discussions progress. The exclusivity agreement provides a period for focused negotiation and evaluation of the potential benefits and risks of the proposed acquisition.
