Sweden's EQT bids to buy Australia's AUB Group at a $3.41 billion valuation

(Reuters) -Australia's AUB Group said on Tuesday it had received a takeover offer from Swedish private equity firm EQT, in a deal valuing the insurance broking company at A$5.25 billion ($3.41 billion). 

Under the proposal, EQT is offering A$45 per AUB share, which reflects a 25.1% premium to the Australian company's last close. 

The A$45 apiece offer follows a previous approach, where the buyer had bid A$43 per share in cash.

The company said it entered into a confidentiality and exclusivity agreement with EQT and has provided the private equity firm access to its books for a six-week period, which began on October 8.

The news comes as AUB Group's shares have largely stagnated over the past year despite steady institutional interest, underperforming both its rival and the broader market.

The deal is on the heels of AUB continuing to adjust to changes in its shareholder base, following U.S. private equity firm Odyssey Investment Partners' near A$277 million sell-down last year. 

The company currently counts First Sentier Investors and Capital World Investors as its top two shareholders, according to data compiled by LSEG.

($1 = 1.5389 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Alan Barona)