This article is from the Australian Property Journal archive
ASX-listed developer Villa World has accepted Avid’s takeover bid of nearly $294 million.
US-managed diversified property developer Avid made an unsolicited initial offer of $2.23 per share in March for Gold Coast-based Villa World and requested due diligence, and made a revised takeover offer of $2.345 per share.
Villa World recently extended due diligence discussions and yesterday unanimously recommended Avid’s proposal to shareholders.
Avid, previously known as Investa Land, is local arm of US private equity investment firm Proprium Capital, itself spun out of Morgan Stanley. It has a pipeline of circa $3 billion of broadacre, medium-density and industrial projects, and has been keen to expand into greenfield developments on Australia’s east coast.
Anthony Kingsley, chair of Avid, said, “Villa World’s innovative housing platform and exposure to greenfield east coast growth corridors positions Avid to scale up across a larger portfolio of assets and future built form opportunities”
“Combining those assets with Avid’s access to capital and global property expertise will position the business to deliver on our growth and diversification strategy, with outstanding outcomes for customers.”
The proposal represents a 17.8% premium to the Villa World closing share price of $1.99 on 14th March, its last closing price before Avid made its initial proposal.
Mark Jewell, independent chair Villa World, said: “We are proud of what Villa World has created over a long and successful journey.
“We’re pleased to be entering into a binding transaction with Avid today which provides our shareholders the opportunity to realise their investment in Villa World at an attractive and certain price.”
Completion of the acquisition is expected by the end of 2019.
