Australia's Ingenia Receives A$2.2 Billion Takeover Proposal From AVID

Australian property group Ingenia Communities said on October 26 that it had received an unsolicited, non-binding takeover proposal from AVID Property Group Holdings. The proposed cash consideration is A$5.35 per stapled security, with investors potentially retaining a distribution of up to A$0.05, for total value of as much as A$5.40 per security. The indicative offer values Ingenia at approximately A$2.2 billion.

Ingenia's board has entered into a process deed giving AVID up to six weeks of limited exclusivity to examine a possible transaction. The company has also ended data-room access for rival bidder Warburg Pincus, whose latest reported proposal was A$5.25 per security. The new approach intensifies competition for a business operating residential land-lease communities and holiday accommodation in Australia.

A completed AVID takeover would require due diligence, a definitive agreement and relevant regulatory approvals. AVID's proposal also requires Ingenia to abandon its planned acquisition of Peet Limited. Ingenia has not determined that the new proposal is superior to its existing Peet arrangement, and its board has not recommended that shareholders accept a transaction. The approach remains preliminary and there is no certainty it will result in a binding deal.

The announcement was made in Australia earlier on Monday; it is a same-day corporate development rather than a takeover completed within the past hour.