Global investment companies EQT AB and CVC Asia Pacific Ltd have ended discussions with AUB Group regarding a potential takeover of the listed Australian insurance broker. The proposed deal valued AUB at approximately A$5.2bn ($3.4bn).
In a statement lodged with the Australian Securities Exchange (ASX), AUB said that the Consortium has advised AUB that it does not intend to proceed with a binding proposal at A$45.00 per share.
However, the AUB board believes that the price of A$45.00 per share appropriately values AUB in the current market environment.
The now-aborted unsolicited, confidential and non-binding indicative proposal from the Consortium was to acquire 100% of AUB by way of a scheme of arrangement for cash consideration of AUB shares.
AUB's CEO and Managing Director, Michael Emmett, said, “AUB Group continues to deliver robust performance, underpinned by a clear strategy and disciplined execution. The recent due diligence process, while demanding, has reaffirmed our confidence in our improvement initiatives and long-term growth prospects. Now that discussions with the Consortium have ended, our board and management team are fully focused on advancing our portfolio of organic growth initiatives and acquisition opportunities. We remain confident in AUB Group’s forecast FY26 financial performance and see significant opportunities to grow profits in FY27 and beyond.”
AUB is a listed group comprising insurance brokers and underwriting agencies operating in ~579 locations.