Steadfast Group’s shares entered a trading halt today. According to the firm's release to the ASX, the suspension is tied to an expected announcement regarding a potential control transaction.
The halt will remain in place until that announcement is released to the market or until normal trading resumes at the open of business on Friday — whichever comes first. Steadfast shares closed at $3.95 prior to the suspension, placing the company's market capitalisation at approximately $4.39 billion.
Read next: Steadfast’s offshore push shows how far Australia’s broking model can stretch
The Australian Financial Review reported, citing unamed sources, that Steadfast has received a takeover approach and speculated that “logical candidates include the NYSE-listed giants Marsh McLennan and Arthur J. Gallagher, as well as the UK’s Ardonagh Group – all prolific deal-doers in Australia.”
In the months ahead, group CEO Robert Kelly (pictured), who co-founded Steadfast in 1996 and built it into the largest general insurance broker network and underwriting agency group in Australia and New Zealand, is expected to transition to the board.
In ASX regulatory language, a "control transaction" refers to any corporate event that could result in a change of control of the company — meaning a shift in who holds a dominant or majority ownership stake.
Insurance Business has reached out to Steadfast for comment and will update the story when more information is available.
