CANBERA (dpa-AFX) - Challenger Ltd. (CFIGF.PK, CGF.AX), an Australian provider of retirement income and investment management solutions, reported Monday higher net sales and Assets Under Management for the first quarter.
Separately, the company announced that it is considering non-binding and conditional indicative offer from Daiichi Life Group, Inc. unit to acquire the remaining 79.5 percent of ordinary shares in Challenger it does not already own.
In Australia, the shares were surging around 19.29 percent, trading at A$11.75.
Regarding the non-binding offer from TAL Daiichi Life Australia Pty Limited or TDA, Challenger said the deal will be through a scheme of arrangement at a price of A$11.80 per share.
The proposal is subject to conditions including satisfactory completion of due diligence, entry into a scheme implementation agreement on acceptable terms and approval from various regulatory bodies, and Board recommendation.
Challenger said the offer represents a 17.7 percent premium to its one-month volume weighted average price of A$10.03.
The company said its Board is considering the indicative offer, while urging the shareholders not to take any action.
The company added that there is no certainty the proposal will result in a binding offer or that any transaction will eventuate.
In its trading update, Challenger said its first-quarter total sales were A$4.4 billion, up 52 percent from last year, driven by annuity sales and strong Index Plus sales.
Fixed term sales of A$2.2 billion grew 103 percent.
The company said sales momentum was strong across both domestic and offshore annuities, supported by demand for guaranteed income solutions in Australia and Japan.
Challenger's AUM increased 5 percent for the quarter to A$31.92 billion from A$26.01 billion last year, mainly reflecting book growth.
Net annuity flows were A$1.1 billion or 6.3 percent annuity book growth for the quarter.
Total net flows, including Index Plus and LiFTS, were A$1.8 billion representing total book growth of 7.7 percent for the quarter.
Annuity sales increased by 72 percent to A$2.8 billion driven by strong fixed term sales and offshore reinsurance annuity sales.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
