Gold Coast developer Villa World enters into agreement for Avid to buy all shares in the Broadbeach-based company
A Broadbeach-based developer has entered into a binding agreement for a major company to acquire all shares in the company.
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BROADBEACH-based developer Villa World has entered into a binding agreement for Avid Property Group to acquire all shares in the company.
The company announced the scheme implementation agreement this morning and said the $2.345 per share cash offer represented an opportunity for securities holders to “fully realise their investment” in Villa World.
Shareholders will get the opportunity to vote on the scheme in mid-October with implementation, if the vote is for the proposal, expected in October or early November.
Shares were trading slightly higher this morning post-announcement at $2.325, or up 1.97 per cent since the market opened.
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The recommended offer, which has the backing of the board, represents a 17.8 per cent premium to the Villa World closing share price of $1.99 on March 14, before the offer was announced.
Avid, formerly Investa Land, is the Australian arm of international fund manager Proprium Capital Partners.
It first made the offer to acquire Villa World in March at $2.231 per share and later received the board’s blessing when the offer was increased to $2.345 per share.
Avid, which says it has a pipeline of $3 billion worth of broad acre and medium-density residential and industrial projects, said the scheme is not conditional on it securing funds for the takeover, which values the company at $293.5 million.
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Villa World CEO and managing director Craig Treasure said the proposed sale is an endorsement of the quality of its brand and the strong relationships it has built with customers and shareholders.
“The combination of our business with Avid … will provide an enhanced proposition for our customers and staff,” Mr Treasure said.
Avid chair Anthony Kingsley said the acquisition would enable the company to build a larger portfolio and assets across the East Coast market.
“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 our customers,” he said.
Villa World, which has enjoyed a five-year streak of full-year profit growth, has not provided full-year guidance for this year.
It reported a profit of $17.6 million for the half year.
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