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AVID Property's buyout offer values Australia's Ingenia Communities at $1.5 billion

By Reuters News

Oct 26 (Reuters) - Australia's Ingenia Communities INA.AX said on Monday it received a takeover proposal from AVID Property Group Holdings Pty, valuing the firm at A$2.20 billion ($1.54 billion), sending its shares to a nine-month high.

Shares of the company jumped as much as 9.1% to A$5.195, their highest level since January 12.

AVID's proposal of A$5.40 per Ingenia share, made after market close on Friday, comprises A$5.35 per share in cash, plus a permitted distribution of up to A$0.05 per share.

The indicative proposal represents a 13.4% premium to the land-lease community operator's last close.

It brings a rival bidder into the contest for the property developer, which has received three rounds of bids from Warburg Pincus, and could derail the company's planned A$992.5-million acquisition of Peet PPC.AX.

The board decided to enter into a process deed with Sydney-based diversified residential developer AVID and give it a period of "soft" exclusivity of up to six weeks, Ingenia said, terminating Warburg Pincus' access to its data room as a result.

AVID's bid is 2.9% above Warburg Pincus' latest offer of A$5.25 apiece.

Last week, the company set an October 23 deadline to sign a process deed with Warburg Pincus.

The AVID deal also hinges on Ingenia terminating an implementation deed with Peet PPC.AX, announced in late August as part of the latter's acquisition.

($1=1.4241 Australian dollars)

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