Guess which ASX 200 stock just surged 16% in today's crashing market!

How is this ASX 200 stock leaping higher in Monday's tumbling market?

| More on:
Man pointing at a blue rising share price graph.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The S&P/ASX 200 Index (ASX: XJO) is taking a Trump tariff beating today, but that's not holding back this surging ASX 200 stock.

The outperforming company in question is Challenger Ltd (ASX: CGF).

Shares in the investment management company closed on Friday trading for $5.54. In earlier trade on Monday, shares just leapt to $6.40, up 15.5%. After some likely profit-taking, shares are changing hands for $5.97 apiece at the time of writing, up 7.8%.

To put that performance in better context, the ASX 200 is down 4.1% at this same time.

Here's what's grabbing investor interest today.

ASX 200 stock rockets on share acquisition news

The Challenger share price is surging today after the ASX 200 stock announced that TAL Dai-ichi Life Australia has agreed to acquire a 15.1% minority interest in the company from MS&AD Insurance Group Holdings.

TAL is a subsidiary of Dai-ichi Life Holdings, a Japanese-based mutual insurance company.

TAL is offering 763 yen per Challenger share, or approximately AU$8.46 per share. That's 52.7% above Friday's closing price.

In a media release, TAL said it "recognises the evolving needs of Australia's retirement market".

TAL said its minority investment in the ASX 200 stock reflects "TAL's long-term commitment to the retirement income solutions sector, where we expect to benefit from the anticipated market growth".

What did management say?

Commenting on the share acquisition proposal sending the ASX 200 stock flying higher in today's sinking market, Challenger CEO Nick Hamilton said:

Dai-ichi Life is a global leader in life insurance and we look forward to building a relationship that will benefit both our customers and shareholders. We welcome their significant investment in our business and will explore future opportunities that support our strategic objectives.

The strategic reinsurance relationship in place with MS Primary since 2016 has created significant shared value and we are pleased this will continue. This is an exciting time for Challenger as we deliver our growth strategy and provide financial confidence to even more Australians in retirement.

In 2024, Challenger and MS Primary, a subsidiary of MS&AD, renewed their reinsurance partnership for another five years.

Hamilton said that the arrangement continues to deliver "well above the minimum volume levels".

The company stressed that Challenger and MS Primary's successful decade-long collaboration will not be impacted by the share sale.

The ASX 200 stock's share sale to TAL remains subject to customary regulatory approvals, including from the Australian Foreign Investment Review Board (FIRB) and the Australian Prudential Regulation Authority (APRA).

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to a disappointing week for investors this Friday.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Betr, Centuria Capital, GR Engineering, and Mach7 shares are pushing higher

These shares are having a good finish to the week. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX gave up an afternoon lead to close lower today.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Clarity Pharmaceuticals, Kelsian, Life360, and Syrah shares are rising today

These shares are pushing higher on Thursday. But why?

Read more »

Man smiling on top of rocks with mountains in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were in a nervous mood today.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Beach Energy, Boss Energy, Cochlear, and Light & Wonder shares are pushing higher

These shares are having a good time on hump day. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Tuesday session for ASX investors today.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Thinking of selling your CBA shares? This expert says you should hold on

CBA shares are up by about 80% since November 2023.

Read more »