Challenger rejects takeover offer from TAL Daiichi Life Australia

The board of Challenger Ltd (ASX: CGF) has rejected an indicative, non-binding takeover offer from TAL Daiichi Life Australia (TDA). TDA, which already holds approximately 20.5% of Challenger's ordinary shares, proposed to acquire the remaining 79.5% at a price of $11.80 per share.

Challenger stated that the offer undervalues the business, noting that the company's shares traded at $11.92 apiece on Friday, 23 October. While the board concluded the current proposal is not at a level it could recommend to shareholders, it reaffirmed that it highly values TDA as its largest shareholder and a commercial partner.

The company remains open to further discussions and intends to engage with its main shareholder base to explore whether a new proposal can be agreed upon that better reflects Challenger's value and outlook. There is currently no certainty that a binding offer or transaction will result from these ongoing discussions.