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One day after issuing a disclosure wherein it stated the deal mightn’t even go ahead, Insignia Financial (ASX:IFL) jumped 14% to $4.48 a share as it confirmed CC Capital will be buying the company.
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The confirmation puts to rest a long-running talking stage between the two partners that has dominated a lot of reporting time from Australia’s major finance news outlets.
With a 14% jump on the cards for IFL shares in Tuesday morning trades, Insignia has now shot up to a $3B market cap (bringing 1Y returns to +80%).
While the move needs to get past the foreign review board, the ACCC and APRA, the market clearly doesn’t see too many hurdles.
It’s the latest win for CC Capital, which, in recent history, has been quite focused on Australian assets.
As for HotCopper users, there’s a strong interest in the wealth management stock Insignia – perhaps an outsized interest when one considers that most users are more compelled by the junior mining side of the ASX.
(Perhaps fairly so, given it tends to be more interesting.)
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At any rate, the news on Tuesday was a vindication for those who held on on Monday despite facing fresh uncertainty after seven months, the amount of time it took CC to decide to buy IFL.
What CC Capital does with IFL now remains an open question, but for now, shareholders clearly don’t care.
IFL last traded at $4.48/sh.
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