Australian asset management and annuity provider Challenger's board has rejected a $4.4bn takeover bid from the Japanese Daiichi Life Group.
The company stated the indicative proposal from the Japanese insurer's local unit, TAL Daiichi Life Australia, was too low to recommend to shareholders. However, Challenger remains open to further discussions with the Australian unit to see if a mutually acceptable agreement can be reached, though it cautioned there is no certainty a binding offer will materialise.
Daiichi Life’s Australian unit last week offered to buy the remaining 79.5% of Challenger at A$11.80 per share, valuing the financial firm at about A$7.9bn ($5.5 bn). Dai-ichi Life already holds about 20% of Challenger shares.
Established in 1985, Challenger managed about A$128bn in assets as of the end of March, and is the largest provider of annuities in the Australian market.