Daiichi unit offers A$7.94 bn for Challenger stake

TAL Daiichi Life Australia proposed A$11.80 a share on Oct. 19 for the remaining 79%-plus of Challenger, valuing the Australian investment manager at A$7.94 billion, according to a Reuters report.

Challenger said on Oct. 19 the price was 19.8% above its Friday closing share price, Reuters reported.

"The Board of Challenger is considering the indicative offer," the Australian company said, according to Reuters.

TAL Daiichi Life Australia owns 20.36% of Challenger, Reuters reported, citing LSEG. Daiichi Life, through the unit, first bought a 15.1% minority position from MS&AD Insurance Group Holdings in April 2025.

The proposal is not final. Challenger said the approach depends on several conditions, including completion of due diligence to the bidder's satisfaction, Reuters reported. Daiichi Life did not immediately respond to a Reuters request for comment outside business hours.

Challenger separately reported a 5% increase in assets under management to $31.9 billion for the first quarter of fiscal 2027, citing sales in domestic and offshore annuity products.