AVJennings Given Takeover Proposal by AVID Property

2 min read | November 28, 2024 12:00 AM EST | By Team Kalkine Media

Google News:

AVJennings Given Takeover Proposal by AVID Property — Image source: Shutterstock

Recent News

Is CES Energy Solutions (TSX:CEU) Entering a New Chapter?

Why Waste Connections (TSX:WCN) Keeps Finding Strength?

Sun Life (TSX:SLF) Stays In Focus With Steady Dividend Strength

Why Stria Lithium (TSXV:SRA) Is Emerging As A Penny Stock To Watch?

Make Kalkine Media
My Trusted Source

Highlights:

AVJennings (ASX:AVJ) has received a non-binding proposal from Proprium Capital Partners and AVID Property Group to acquire all outstanding shares in AVJennings through an all-cash offer.

The proposal offers a 103% premium to AVJennings' closing share price, along with a potential special dividend for shareholders.

The proposal is subject to due diligence, board approvals, regulatory clearances, and shareholder approvals before proceeding.

AVJennings (ASX:AVJ) , one of Australia’s leading residential property developers, has announced the receipt of an unsolicited, non-binding indicative proposal from Proprium Capital Partners and AVID Property Group. The proposal aims to acquire all outstanding shares in AVJennings through an all-cash offer, executed via a scheme of arrangement, with an offer price of $0.67 per share. This price represents a substantial premium of 103% over AVJennings' closing share price of $0.33 on 27 November 2024.

In addition to the cash offer, AVID has proposed a fully franked special dividend of up to $0.06 per share. This would provide eligible shareholders with additional value through franking credits. However, the total cash consideration under the scheme would be adjusted to reflect the amount of the dividend.

The proposal follows extensive discussions between AVJennings and AVID, which began with a preliminary non-binding offer made on 2 August 2024. If the proposal moves forward, it remains subject to various conditions, including confirmatory due diligence by AVID, approval from AVID’s board, regulatory approvals from the Australian Foreign Investment Review Board (FIRB) and New Zealand’s Overseas Investment Office (OIO), as well as court and shareholder approvals.

AVJennings’ Board has entered into an Exclusivity Deed with AVID, granting the bidder exclusive rights to conduct due diligence through to 31 January 2025. The Board has indicated that, should the conditions be met and an independent expert concludes that the proposal is in the best interests of shareholders, it intends to recommend the offer.

AVJennings has engaged Barrenjoey as its financial adviser and Allens as its legal adviser. Following the announcement, AVJennings shares saw a notable increase, rising by 87.88% to 62 cents. Further updates will be provided as the situation develops.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.