Australia’s Ingenia Communities said on Friday it had received an improved takeover proposal from private equity firm Warburg Pincus, valuing the lifestyle housing developer at A$2.28 billion ($1.59 billion) and intensifying a bidding contest with rival suitor AVID.
Warburg Pincus’ latest offer of A$5.60 per share, its fifth proposal, comes days after Sydney-based property developer AVID matched its previous A$5.50-a-share bid.
The new proposal, which includes a permitted distribution, represents a 1.8% increase on Warburg Pincus’ earlier offer and a 53.4% premium to Ingenia’s closing share price before the US buyout firm’s initial approach in September.
The latest proposal hinges on Ingenia entering into a process deed that would grant Warburg Pincus and its co-investors, Discovery Parks and LDR Capital, immediate due diligence access
It also requires Ingenia to provide exclusive due diligence access by November 10, with exclusivity running through December 14.
Under the proposed process deed, a rival bidder would be allowed to retain due diligence access for four days after submitting a matching proposal.
The improved offer follows an amended proposal from Warburg Pincus earlier this week, which Ingenia’s board said was not superior to the process deed agreed with AVID on November 2.
Ingenia said it continues to work with Peet PPC.AX towards implementing its proposed acquisition of the residential property developer.
Ingenia shares rose as much as 2.3% to A$5.32 by 0041 GMT and have gained nearly 45.8% since Warburg Pincus first approached the company.
($1 = 1.4382 Australian dollars)
Reuters
