Key facts
- AVID's A$5.50 per share offer includes a distribution of up to A$0.05 cash per share from Ingenia for the half year ending December 31, 2026.
- Ingenia said it does not yet intend to recommend that shareholders vote in favor of AVID's proposal.
- Ingenia said it will continue its pursuit of residential property developer Peet.
- Vestra Capital's Mark Elzayed said pursuing Peet while the offers remain non-binding protects shareholder options.
AVID Property Group matched Warburg Pincus' A$2.24 billion ($1.57 billion) takeover proposal for Australia's Ingenia Communities, Ingenia said on Monday. The Sydney-based real estate developer raised its offer to A$5.50 per share from A$5.40, matching the sweetened bid Warburg Pincus made on October 28.
The price includes a distribution of up to A$0.05 cash per share that Ingenia will pay its shareholders for the half year ending December 31, 2026. AVID's offer represents a premium of 15.5% to Ingenia's last close before AVID's first indicative proposal on October 26.
Ingenia said it does not yet intend to recommend that shareholders vote in favor of AVID's proposal and will continue its pursuit of residential property developer Peet. Ingenia had proposed to buy out Peet in August, in a deal valuing the latter at A$992.5 million.
Warburg Pincus' access to Ingenia's books ended on Monday when a deadline expired. Mark Elzayed, chief investment officer at Vestra Capital, said pursuing Peet while the takeover offers remain non-binding is a reasonable way to protect shareholder options. "However, investors should expect the board to explain clearly how it compares an immediate cash exit with the longer term value and execution risks of acquiring Peet," Elzayed said.
Ingenia shares rose as much as 2.5% to A$5.445 on Monday, hitting their highest level since mid-December.