AVJennings (ASX:AVJ) Opens Due Diligence to Ho Bee Land Amid Competing Proposals

January 17, 2025 02:38 PM AEDT | By Team Kalkine Media

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AVJennings (ASX:AVJ) Opens Due Diligence to Ho Bee Land Amid Competing Proposals — Image source: shutterstock

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Highlights

AVJennings (ASX:AVJ) grants access to due diligence to Ho Bee Land.

Ho Bee Land offers a 70¢ a-share bid for the developer and homebuilder.

AVID’s exclusivity period for due diligence ends on January 31.

AVJennings (ASX:AVJ), the well-known Australian developer and home builder, is allowing Ho Bee Land, a Singapore-based developer, access to its due diligence process. This comes after Ho Bee Land presented a 70¢ per share offer to acquire AVJennings. The announcement followed earlier negotiations when AVJennings also entered into discussions with Proprium Capital Partners and AVID Property Group, who previously made a lower offer of 67¢ per share back in November.

The situation has led to interesting dynamics, as AVJennings had already been involved with AVID in an exclusivity arrangement. This agreement, however, included a fiduciary exception which permits the company to engage with legitimate competing offers during the exclusive period. It is this exception that now allows Ho Bee Land to examine the financials and other business details of AVJennings.

The exclusivity period with AVID and its representatives remains active, continuing under the conditions specified in the announcement on November 28. However, the exclusivity period is scheduled to conclude by 5 pm AEDT on January 31. This suggests that the coming weeks may be crucial for these competing proposals, as the market awaits clarity on who might secure a deal with AVJennings.

It is also worth noting that during these evaluations, AVJennings is being advised by Barrenjoey, acting as its financial adviser, and Allens, who is providing legal advice. Their role is critical in helping AVJennings assess the various opportunities and interests while ensuring that due diligence is carried out appropriately with confidentiality agreements intact.

In conclusion, this ongoing situation between AVJennings, Ho Bee Land, and AVID Property Group presents intriguing developments in the Australian property and development space. While AVID's exclusivity period runs out soon, Ho Bee Land has positioned itself as a serious contender with its higher bid. Investors and industry stakeholders will be keenly watching how these discussions unfold.

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