Challenger Life will make an off-market takeover offer for all units it does not already own in subsidiary Challenger Diversified Property Group (CDI).
The suitor owns 58.7% of CDI and will offer $2.74 per unit cash consideration for the remaining shares, valuing the company at $586 million.
The payment will be reduced by the amount of any distribution to which CDI shareholders become entitled to during the offer.
Challenger Life says it will not increase its consideration, adding it exceeds the latest published value of CDI's net tangible assets, which was $2.71 per unit at December 31, 2013.
CDI's responsible entity recommends unit holders accept the offer in the absence of a superior proposal.