US real estate private equity firm Proprium Capital Partners has offered to take Australian housebuilder AV Jennings private in a A$374m (€230.5m) deal.
Proprium is proposing to acquire AV Jennings for A$0.671 per share through a scheme of arrangement. The offer price represents more than double the closing price of A$0.33 per share at the time the proposal was made.
AV Jennings directors said they believed the indicative proposal, subject to agreement of final terms, would provide AV Jennings shareholders with an opportunity to realise their investment at a price significantly above its historical trading levels with certain value through all-cash consideration.
Upon completion, AV Jennings will be integrated into Avid Property, an Australian residential and industrial developer that Proprium acquired in 2016.
Cameron Holt, CEO of Property, said AV Jennings had significant synergy with his company, pointing to its existing portfolio and pipeline of residential communities in Australia and New Zealand.
He said these assets were complementary to Avid’s portfolio and growth strategy, and would add further depth to its product offering for a broad range of customers if the acquisition eventuated.
“Any agreed transaction would require satisfactory due diligence outcomes, board approvals and the negotiation and execution of a scheme implementation agreement,” said Holt.
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