Opinion on Insignia Financial Ltd (IFL)
Hi MM, What’s your opinion on IFL given there are 2 potential buyers - is it time to take some money off the table or wait?
The Latest Q&A
Answer
Hi Peter,
IFL has attracted acquisition interest from two U.S.-based private equity firms: Bain Capital and CC Capital Partners. Both companies have delivered revised higher bids of $4.60 hence Insignia Financial has granted both two U.S.-based private equity firms access to non-public information to facilitate due diligence.
It looks likely that a deal of some structure will go ahead with one of these suitors, but with the stock trading around $4.60 on Friday the risk/reward isn’t appealing, and we think the majority of the juice has been squeezed from this lemon! i.e. we see little upside from current levels and a lot of downside if either uncover a skeleton or two in the closet – not out of the question given the company’s history.
- If MM was long IFL, we would be looking to take profit ~$4.60.
