Steadfast Group's (ASX:SDF) potential acquisition by the Amwins-Dragoneer consortium means the consortium would be capturing Steadfast at a cyclically depressed multiple even with the large headline premium, Jarden said in a Wednesday note.
The company confirmed a conditional, non-binding indicative proposal from a consortium of Amwins and Dragoneer, Amwins' largest shareholder, to acquire 100% of Steadfast at AU$6 cash per share via a scheme of arrangement.
The AU$6 bid implies a take-out multiple of around 20.7x fiscal 2026 earnings-per-share estimates, below the last two broker schemes. The bid supports sector valuations.
The investment firm retained its overweight rating on Steadfast Group and raised the price target to AU$5.90 from AU$5.65.
Steadfast Group's shares shed nearly 2% in recent Thursday trade.