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AVID Property bids for Villa World
Posted on Thursday, 14 March 2019 10:35
Australian property developer Villa World has announced the receipt of an acquisition approach from domestic peer AVID Property Group Australia last week.

The company said that on 8th March, the suitor offered to buy all stock in the company by way of a scheme of arrangement for AUD 2.23 (USD 1.57) per share.

Under these terms, the transaction can be valued at AUD 279.87 million.

The offer represents a 9.3 per cent premium over Villa World’s close of AUD 2.04 on 13th March, the last trading day prior to the bid being announced.

Closing of any deal requires the satisfactory completion of due diligence, negotiation of a scheme implementation agreement and the green light from AVID’s board.

In addition, Villa World’s executives will be required to give their seal of approval, as will regulatory authorities such as the Foreign Investment Review Board.

The acquiror intends to finance the transaction using internal resources, equity contributions from shareholders and debt facilities.

Villa World was founded in 1986 and has since created more than 19,000 properties across Australia.

The company posted a profit of AUD 17.62 million for the six months to the end of 2018, up from AUD 17.31 million over the corresponding timeframe in 2017.

There have already been 775 deals targeting real estate businesses announced worldwide since the beginning of 2019, according to Zephyr, the M&A database published by Bureau van Dijk.

Of these, the most valuable featured a Luxembourg-based target as Yakir Gabay sold a 9.9 per cent stake in Aroundtown to undisclosed investors for USD 912.95 million.

This was followed by a USD 890.00 million transaction, in which NH Investment&Securities and ARA Korea signed on the dotted line to pick up South Korea-headquartered Seoul Square.

Other companies in the sector to have been targeted this year include Deutsche Wohnen, MedEquities Realty Trust and Segro.

© Zephus Ltd