AUB Deal Faces Uncertainty Despite Consortium Bid and Exclusivity Extension

Background on the Proposal

AUB Group Limited, a major player in the insurance brokerage and underwriting agency sector, has provided a significant update on its ongoing acquisition discussions. Previously, EQT AB had secured an exclusivity agreement to conduct due diligence and negotiate a potential takeover of AUB at a cash price of A$45.00 per share. This proposal, if successful, would see EQT acquire 100% ownership of AUB through a scheme of arrangement.

Emergence of a Consortium Bid

In a notable development, EQT revealed it received an unsolicited approach from CVC Asia Pacific Limited, proposing a joint acquisition effort. This consortium approach means that rather than EQT acting alone, both EQT and CVC funds, potentially alongside other co-investors, would collectively own AUB. Importantly, the offer price remains unchanged at A$45.00 per share, signaling a consistent valuation despite the shift in bidder structure.

Board’s Response and Exclusivity Extension

The AUB Board has responded pragmatically by permitting EQT to form this consortium with CVC and agreed to extend the exclusivity period by an additional two weeks, now expiring at 5 – 00pm Sydney time on December 4, 2025. This extension allows the parties to complete their due diligence and finalize the definitive transaction documents necessary to move forward. The confidentiality agreement governing these discussions will be updated to reflect the consortium arrangement and the extended timeline.

Uncertainty Remains

Despite these positive steps, the AUB Board cautions that there is no certainty a binding agreement will be reached. The consortium proposal remains non-binding and subject to successful negotiation and regulatory approvals. Shareholders are advised that no immediate action is required, and further updates will be provided as the situation evolves.

Market Implications

This consortium bid introduces a new dynamic to the acquisition process, potentially strengthening the financial backing and strategic positioning of the offer. However, the involvement of multiple parties may also complicate negotiations and due diligence. Investors will be watching closely to see if this partnership can deliver a successful transaction or if competing interests might delay or derail the deal.