AVJennings’ directors have endorsed a proposed $369 million takeover by Proprium Capital Partners and AVID Property Group. The offer of $0.655 per share represents a 98.5% premium over the closing price on November 27, 2024, and a 103.4% premium over the three-month volume-weighted average price. Shareholders may also receive a fully franked special dividend, adding up to approximately $0.072 per share in franking credits, which would reduce the offer price accordingly.
The endorsement follows the termination of discussions with Singapore developer Ho Bee Land, whose conditional bid of $0.70 per share was withdrawn after failing to submit a binding proposal. AVID initially offered $0.67 per share but later reduced it by $0.015 after due diligence. Despite the reduced price, the AVJennings board believes the offer provides shareholders with certainty and substantial value. SC Global Developments, holding over 54% of AVJennings, intends to vote in favor of the takeover. AVID is one of Australia’s largest private residential developers, managing over 6,300 residential blocks with a $5 billion gross revenue pipeline.
