Challenger has rejected TAL Daiichi Life Australia Pty Limited’s (TDA) non-binding proposal to acquire the shares it does not already own through an all-cash scheme of arrangement.
TDA, a Daiichi Life Group subsidiary, proposed paying A$11.80 (US$8.24) per Challenger share for the remaining 79.5% stake. TDA currently holds 20.5% of the Australian company.
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The proposal, announced on 19 October 2026, implied a 17.7% premium to Challenger’s one-month volume-weighted average share price of A$10.03.
Challenger said its board assessed the conditional proposal against the company’s “value and prospects” and determined that it was not at a price “it could recommend to shareholders”.
The company said it regarded TDA as both its largest shareholder and a commercial partner.
Its board plans to engage with TDA to establish whether an offer that could be recommended can be agreed.
Challenger said there is no certainty that a binding proposal will be made or that a transaction will take place.
Shareholders are not required to take action, the company added.
Established in 1985 and quoted on the Australian Securities Exchange, the retirement income specialist runs an Australian Prudential Regulation Authority-regulated life business serving clients, along with institutional credit origination across private and public markets.
It managed A$128bn in assets as at 31 March 2026.
Earlier this month, Challenger reported a 5% quarterly rise in assets under management to A$31.9bn.
This included A$27.7bn of insurance investment assets and A$4.2bn in third-party funds.
Quarterly sales increased 52% to A$4.4bn, with annuity volumes and demand for Index Plus products supporting the result.
Fixed-term sales rose 103% to A$2.2bn, while offshore reinsurance volumes increased 30% to A$320m. Lifetime sales fell 2% to A$314m.
