By Shivangi Lahiri and Jasmeen Ara Islam Shaikh
Nov 2 (Reuters) – AVID Property Group has matched Warburg Pincus’ A$2.24 billion ($1.57 billion) takeover proposal for Australia’s Ingenia Communities, Ingenia said on Monday, pushing its shares to a near 11-month high.
Here are some details:
• AVID, a Sydney-based real estate developer, raised its offer to A$5.50 per share from A$5.40
• The price includes a distribution of up to A$0.05 cash per share that property firm Ingenia will pay its shareholders for the half year ending December 31, 2026
• The latest offer matches US-based Warburg Pincus’ sweetened bid for Ingenia made on October 28
• It represents a premium of 15.5% to Ingenia’s last close before AVID’s first indicative proposal on October 26
• Ingenia said it does not yet intend to recommend that shareholders vote in favour of AVID’s proposal and will continue its pursuit of residential property developer Peet
• Ingenia had proposed to buy out Peet in August, in a deal valuing the latter at A$992.5 million
• Warburg Pincus’ access to Ingenia’s books ended on Monday when a deadline expired
• Mark Elzayed, chief investment officer at Vestra Capital, said pursuing Peet while the takeover offers remain non-binding is a reasonable way to protect shareholder options
• “However, investors should expect the board to explain clearly how it compares an immediate cash exit with the longer term value and execution risks of acquiring Peet,” Elzayed added
• Ingenia shares rose as much as 2.5% to A$5.445 on Monday, hitting their highest level since mid-December
($1 = 1.4225 Australian dollars)
(Reporting by Shivangi Lahiri and Jasmeen Ara Shaikh in Bengaluru; Editing by Sonia Cheema)
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