Annuity provider's shares surge on $8b takeover offer

Key points

• Challenger Limited shares jumped 16.7 per cent to an eight-year high on Monday after it disclosed a tentative takeover offer from TAL Dai-ichi Life Australia. The offer values the 79.5 per cent stake Challenger does not already own at $11.80 per share, a premium of 17.7 per cent to its average price over the past month.
• Challenger's board is considering the indicative offer, which is subject to conditions including due diligence. TAL is Australia's largest life insurer.
• Challenger reported annuity sales of $4.4 billion in the September quarter, up 52 per cent from a year earlier.