Swedish private equity giant EQT has made a move to acquire Australia’s AUB Group, valuing the insurance broker at about A$5.25 billion ($3.41 billion). AUB confirmed on Tuesday that it has granted EQT exclusive access to its financials following a takeover proposal offering A$45 per share — a 25.1% premium to its last closing price.
The offer follows a previous approach where EQT had proposed A$43 per share in cash. AUB’s shares surged as much as 11% to reach a record A$39.95 after the announcement, though they remained below the offer price. The company said it has signed a confidentiality and exclusivity agreement with EQT, allowing the private equity firm a six-week due diligence period that began on October 8.
The news comes after AUB paused trading on Monday following a sharp 12% price jump amid media speculation. The company’s stock performance has been largely stagnant over the past year, underperforming both its rival Steadfast Group and the broader market despite strong institutional backing.
AUB has recently seen shifts in its shareholder base, including a near A$277 million sell-down by U.S. private equity firm Odyssey Investment Partners last year. Major shareholders now include First Sentier Investors and Capital World Investors, according to LSEG data.
Global private equity players have shown growing appetite for Australian financial and insurance assets, encouraged by resilient premium growth and steady cash flows. Analysts at Jarden noted that with brokers well-capitalized and organic growth opportunities slowing, more consolidation is likely within the sector. EQT’s approach follows its recent interest in Perpetual’s wealth and corporate trust business, highlighting its continued focus on expansion through strategic acquisitions.
Source: Reuters
