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Highlights:
AVJennings’ board is recommending shareholders vote in favour of a proposed takeover offer by Proprium Capital Partners and AVID Property Group.
The offer provides a significant premium of 103% over AVJennings' closing share price on November 27, 2024.
Due diligence will be completed by the end of January 2025 before a binding proposal is presented.
The board of AVJennings (ASX:AVJ) has announced that it will recommend shareholders vote in favour of a proposed takeover offer from Proprium Capital Partners and AVID Property Group. The proposal involves an acquisition of all outstanding shares in AVJennings via a scheme of arrangement, with a cash consideration of $0.67 per share. This offer represents a substantial premium, with a 103% increase over AVJennings' closing share price of $0.33 on November 27, 2024, and a 108% premium over the three-month volume-weighted average price of $0.3221.
As part of the offer, AVID has also proposed that AVJennings pay a fully franked special dividend on or before the scheme implementation date. This would allow eligible shareholders to receive additional value in the form of franking credits, potentially amounting to approximately $0.06 per share.
In preparation for a binding proposal, AVJennings’ board has granted AVID exclusive access to a due diligence period until the end of January 2025. This period will allow AVID to confirm its offer, with the board stating that, subject to the satisfactory completion of due diligence and an independent expert’s assessment, the company will support the proposal and vote in favour of the scheme, provided no superior offer is made.
The takeover bid, which has been under discussion since August 2024, follows extensive negotiations between AVJennings and the two parties. Proprium Capital Partners, a US-based real estate investment manager, is responsible for managing approximately $4 billion in assets, including AVID, which is one of Australia’s largest privately held residential developers. AVID’s portfolio includes significant residential developments, with projects across master-planned communities, homes, apartments, and resort communities.
