AVJennings, a key-player in Australia’s home-building sector, is set to go private after a USD374m buyout offer from American private real estate investment giant Proprium Capital Partners, according to a report by AFR.
If approved, AVJennings will be absorbed into Avid Property Group, a residential and industrial developer that Proprium acquired in 2016. Avid has been addressing Australia’s housing supply shortfall and recently entered the land lease housing market to diversify its portfolio further.
The 67¢-per-share offer represents a 108% premium over the three-month volume-weighted average price of 32.21¢. Following the announcement, AVJennings shares surged nearly 90% to close at 62¢, underscoring market confidence in the deal.
The offer also includes a special dividend of up to 6¢ per share in franking credits for shareholders.
AVJennings, led by CEO Philip Kearns, has recommended the deal, with the company stating that the offer provides shareholders with an opportunity to “realise significant value”.
The deal remains subject to due diligence, which is expected to continue until late January, and requires the approval of Singapore-based majority shareholder and AVJennings chairman Simon Cheong, who has held a stake since 1999.
