AVJennings soars on buyout plans by US real estate fund
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More news: Shares in AVJennings jumped more than 9% to 66 cents each in early trading after it agreed to a takeover bid from US real estate investment manager Proprium Capital Partners for 65.5 cents a share.
The property developer, which is majority-owned by Singapore property developer SC Global, said it accepted the trimmed offer price — reduced from a previous bid of 67 cents a share — following extensive due diligence over the last four months and after a binding proposal from rival bidder Ho Bee Land failed to materialise.
AVJennings agrees to $369m buyout by US real estate fund
The news: Property developer AV Jennings has agreed to a takeover bid from US real estate investment manager Proprium Capital Partners after ending discussions with a rival bidder, Singapore developer Ho Bee Land.
The numbers: Under the deal, Proprium and its Australian property group AVID will acquire all AVJennings shares for 65.5 cents each, a 98.5% premium to its 33 cents on 27 November and valuing the company at $369 million.
AVJennings shares closed at 60 cents each on Monday.
The context: AVJennings, which is majority-owned by Singapore property developer SC Global, said the offer price by Proprium and AVID was reduced from the previous bid of 67 cents a share after extensive due diligence over the last four months. The company also ended discussions with Ho Bee Land, which had made a conditional 70 cents a share bid, after it failed to submit a binding proposal.
AVJennings board has unanimously recommended the deal, saying it provides certainty of value at a substantial premium. SC Global, which holds 54.02% stake, will vote in favour of the scheme.
The source: ASX
