Gold Coast developer Villa World to be delisted from stock exchange after takeover given green light by shareholders

Next week marks the end of an era for Gold Coast developer Villa World when it is delisted from the stock exchange after shareholders approved the $290 million takeover by Proprium.

Villaworld managing director Craig Treasure supported the takeover by Avid. Photo: Jason O'Brien

NEXT week marks the end of an era for Gold Coast developer Villa World when it is delisted from the stock exchange after shareholders approved the $290 million takeover by the Australian arm of US-based real estate funds manager Proprium.

The buyout by Proprium-owned Avid Property Group, approved yesterday with 96.97 per cent of votes cast in favour of the scheme, brings to an end a 30-year plus run on the bourse. Villa World was founded by Tony Bawden and Greg Phillips and listed in 1986. Shareholders have agreed to sell to Avid for $2.345 per share, meaning the company will be taken off the ASX on Wednesday.

The $2.345 includes a special dividend of 31¢ to be paid on October 28.

Managing director Craig Treasure said the “overwhelming” vote in favour of the Avid deal had validated the board’s decision to put the scheme to shareholders. He said he joined Villa World, an “iconic” Gold Coast business, seven years ago as executive chairman and had been able to “rebuild” the business thanks to the support of staff.

Villaworld directors Mark Jewell, Lisa MacCallum, Craig Treasure and David Rennick at the scheme meeting at Sofitel Broadbeach. Photograph: Jason O'Brien

SUBSCRIBE TO THE BULLETIN FOR $1 A WEEK FOR THE FIRST 8 WEEKS (Min. cost $4).

VILLA WORLD ENTERS AGREEMENT FOR AVID TO BUY ALL SHARES

“This brings me to a bittersweet moment,” he said.

“In the next three weeks there will be a lot of change within the organisation. Personally, and professionally, every time that I have seen change throughout my career it has led to positive outcomes for the people involved. I implore you all to move forward with the combined Avid/Villa World business and take advantage of every opportunity.”

Mr Treasure after the meeting said he will not remain CEO of the merged business and would consider his next step in February next year after having a break.

Villaworld shareholder David Miller lost money on his investment in Villa World but voted for the takeover anyway. Photo: Jason O'Brien

PROFIT PLUNGES BY HALF FOR GOLD COAST DEVELOPER VILLA WORLD

He will stay on as a consultant during the transitional phase as the two businesses are merged together.

Mr Treasure said most Villa World staff will be retained by the merged entity, however some executives will be let go where there is duplication of roles. Not all shareholders shared management’s enthusiasm for the deal.

Retired council manager David Miller said he bought in at $3.57 a share and had lost more than $5000 on the investment. However, he voted for the deal anyway.

“I’m down a dollar a share (from when I bought in). I voted for it because 96 per cent (of proxies) have voted for it and there is no sense in going against it.”

Shareholders look on during the Villa World scheme meeting at the Sofitel Broadbeach. Photo: Jason O'Brien

Shareholders Vince and Marissa Holland, of Ipswich, said they had also lost money.

They voted against the scheme and count their losses at more than $6000.

However, Robina’s David Gross, a shareholder since 1999, was in support of the takeover and voted in favour.

“It is a very efficient company but the way things are in the building industry, it is opportune to take advantage of the offer.”

Villa World is the Gold Coast’s oldest listed company and biggest listed developer.