Australian listed property company Ingenia Communities has rejected an unsolicited indicative takeover offer from Warburg Pincus valuing the business at A$2.9bn (€1.8bn), stating the proposal undervalues the company.
US investor Warburg Pincus is offering A$4.75 per share, representing around 30.1% premium to Ingenia’s last closing price of A$3.65.
Market sources told IPE Real Assets that active investors among the company’s top ten shareholders could press the board to reconsider and engage with Warburg Pincus.
One source pointed out that at least three or four of these investors have previously taken active roles in corporate takeovers.
The company’s major shareholders include Cohen & Steers at 8.75%, Vanguard at 6.14%, Canada Pension Plan Investment Board estments at 6.12 and Australian Retirement Trust at 5%.
Warburg Pincus said: “Warburg Pincus is offering Ingenia shareholders a credible and attractive, all-cash alternative to the proposed Peet transaction. The Warburg Pincus proposal gives shareholders another path to consider, and we believe the board should move quickly to engage constructively so that this alternative can be properly evaluated and made tangible for shareholders.”
Ingenia, which itself launched a takeover bid for Western Australian property developer Peet last month, said that following thorough consideration, the Warburg Pincus proposal was not in the best interests of its securityholders.
“The Ingenia board considers that the proposed acquisition of Peet is an important component of Ingenia’s strategy, securing a significant development pipeline which is expected to support Ingenia’s growth and product delivery over time,” the company said.
Ingenia owns, operates and develops land-lease communities alongside holiday parks offering short- and long-term accommodation.
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