Daiichi Life bids AU$11.80 a share for rest of Challenger

TAL Daiichi Life Australia, a unit of Tokyo-based Daiichi Life Group, submitted an indicative offer on Monday to acquire the remaining 79.5% of Challenger Limited at AU$11.80 per share, valuing the full Australian retirement-income group at approximately AU$7.9 billion.

The offer represents a premium of around 20% to Challenger's closing price on Friday. Shares in the Sydney-listed firm rose as much as 18% in Monday trading. Daiichi Life shares gained roughly 1% in Tokyo.

Challenger, founded in 1985, manages approximately AU$128 billion in assets and operates as Australia's largest annuity provider, serving a retirement market that has expanded steadily as mandatory superannuation balances mature.

Daiichi Life began acquiring a stake in Challenger last year. A full acquisition would rank among its largest transactions, behind the 2015 purchase of U.S. insurer Protective Life for $5.5 billion. The Japanese group has allocated ¥1.5 trillion for strategic investments through March 2031.

Challenger's board confirmed it is reviewing the proposal. No binding offer has been made and no transaction is certain.

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