Challenger’s board said Monday in Australia that it could not recommend TAL Daiichi Life Australia’s A$11.80-per-share takeover proposal at its current level, but intends to continue discussions.
The October 26 market release responds to a nonbinding, conditional proposal announced October 19. TAL seeks the ordinary shares it does not already own through a scheme of arrangement.
Challenger said its board considered the company’s value and prospects before deciding the price was insufficient for a recommendation. It described TAL as both its largest shareholder and a commercial partner.
The board plans to engage with TAL to determine whether they can reach terms it could support. That leaves a possible transaction under discussion, rather than establishing either a completed deal or a binding revised offer.
Challenger, an Australian retirement-income provider, cautioned that negotiations might not produce a binding offer or any transaction. The announcement supplied no revised price or completion timetable.