Shares in Value Logo
Product Review Img Vertical

Date : 07/07/2021

Challenger Share Price Surge On ASX Following Major Shareholder Announcement

Challenger operates two core investment businesses, a fiduciary Funds Management division and an APRA-regulated Life division. Challenger Life Company Limited (Challenger Life) is Australia’s largest provider of annuities.

CGF shares took a nosedive in April 2021. Since then, the CGF share price has been largely trending sideways. The investor day did peak some interest in the stock as Challenger reaffirmed its FY21 profit guidance and provided an update on its strategy and outlook for the financial year ahead. The CEO mentioned CGF expects FY21 normalised net profit before tax to be at the bottom end of its guidance range of between $390 million and $440 million.He said Challenger was expecting to achieve strong profit growth in FY22 with a guidance range for normalised net profit before tax of between $430 million and $480 million.

This morning, CGF shares were one of the top performers among the ASX 200.

Why is the Challenger Share Price Surging On ASX?

Challenger announced today that Athene, a leading retirement services company and their strategic partner Apollo Global Management are investing to take up 15% interest in CGF.

Athene, through its subsidiaries, is a leading retirement services company with total assets of US$205.7 billion as of March 31, 2021 and operations in the United States, Bermuda, and Canada. Apollo is a high-growth, global alternative asset manager with over US$461 billion in Assets Under Management. The acquisition of the 15% equity interest in CGF will result in a total expected minority economic interest of 18% in Challenger for approximately A$720 million(or US$540 million).

Challenger’s Managing Director and Chief Executive Officer, Richard Howes said: “Today’s announcement by Athene is a strong endorsement of Challenger’s market position and long-term growth prospects from a leading international retirement services provider. We look forward to working with Athene and Apollo as we continue to pursue our shared purpose of providing customers financial security for a better retirement.”

The announcement certainly caught markets off guard. However, the reaction has been extremely positive with CGF shares closing at $5.95 a share – rising 8.78%.

Looking for best dividend stocks to invest on the ASX?

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your ‘Top 3 Income Stocks to buy in 2021’ Report instantly for free! Click here to download now!

 

Are You Looking To Buy The Best Stocks In 2022?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2022!

 

Top 5 ASX Stocks
to Buy for Capital Growth in 2022

asx landing page
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.

Download Your Free Report

By downloading this report you agree to the TERMS AND CONDITIONS and our PRIVACY POLICY

Scroll to Top

Login

By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Please fill in your details to download the free report.