Villa World to recommend Proprium's increased takeover offer
Listed Australian residential developer Villa World plans to ask shareholders to vote in favour of an increased takeover offer of more than 5% to A$293.5m (€184m) from Proprium Capital Partners.
US investor Proprium Capital, through its Australian arm AVID Property Group, is now offering $2.3451 per share – up from A$2.23 in its original bid in March.
In a statement, Villa World said: “The board considers the revised proposal provides shareholders with certainty of value and the opportunity to realise a meaningful premium to the market value of their shares.
“Accordingly, the directors of Villa World intend to unanimously recommend that shareholders vote in favour of the revised proposal.”
AVID has been granted access to exclusive due diligence, to expire around the middle of June.
Proprium, which was spun out of Morgan Stanley in 2013, entered Australia in 2015 by acquiring the then-Investa residential land business, which has since been renamed AVID.
If it succeeds in taking over Villa World, AVID will become one of Australia’s largest residential developers.