Aventus, Australia’s largest manager of large format retail centres, has agreed to merge with HomeCo Daily Needs REIT (HDN) in a A$2.2bn (€1.4bn) deal.
HDN, managed by Home Consortium, has entered into a scheme of implementation deed with Aventus to acquire all shares. HDN’s offer of A$3.82 per Aventus security, represents a 15.3% premium to the last closing price of A$3.31 for each security.
David Di Pilla, chief executive and managing director of Home Consortium, which holds 24.1% of HDN, said: “The combination of HDN and Aventus creates a leading ASX-listed Daily Needs REIT with a highly strategic A$4.1bn portfolio of last-mile logistics infrastructure in Australia’s leading metropolitan growth corridors.”
HDN chair, Simon Shakesheff, said: “We believe the merger is strategically and financially attractive for both HDN and Aventus. The increased scale and enhanced capability will allow the merged group to unlock significant value that would not have been accessible on a standalone basis.”
Aventus chairman, Bruce Carter, said the Aventus board had unanimously recommended that Aventus security holders vote in favour of the merger because it would be in their best interests to be part of a larger group.
Retail billionaire Brett Blundy, who founded Aventus almost two decades ago with Darren Holland and now owns around 22% of Aventus, has indicated his support for the merger with HDN.
Holland and Lawrence Wong of Aventus will be offered roles as CEO and CFO of HDN, respectively.
With this transaction, Di Pilla said Home Consortium was well ahead of its stated target to grow external assets under management to A$5bn by the end of 2022, It would have a 13.5% stake in the emerged HDN and Aventus business following the merger.
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