Challenger Ltd (CGF AU) has announced a A$11.80/share non-binding Offer, by way of a Scheme, from Dai Ichi Life Insurance (8750 JP)‘s-backed TAL Daiichi Life Australia.
That’s a 19.8% premium to last close. TAL Daiichi Life is Challenger’s largest shareholder with 20.5%.
Challenger is weighing the benefits of the proposal. The board should engage. Optically and metrically, pricing is fair. Scope for a bump.
The Trade:
Challenger should engage.
Pricing appears fair.
Scope for a bump and/or bolting on (franked) dividends. 1H27 results out late Feb 2027.
Terms remain indicative.
Trading tight at ~3% gross spread after the share price jumped 16% (as I type).
A firm deal could take 8-9 months to complete, depending on the ARPA review.
I would not chase the share price here.