AVJennings (ASX:AVJ) has announced an unsolicited, non-binding indicative proposal from Proprium Capital Partners and AVID Property Group, aiming to acquire all outstanding shares in AVJennings through an all-cash offer of $0.67 per share. The proposal, to be executed via a scheme of arrangement, represents a substantial 103% premium to AVJennings' closing share price of $0.33 on 27 November 2024.
Additionally, AVID has proposed that AVJennings shareholders be allowed to receive a fully franked special dividend of up to $0.06 per share. This dividend would enable eligible shareholders to benefit from additional franking credits, although the cash consideration under the scheme would be adjusted by the dividend's amount.
The proposal follows extensive discussions and negotiations after AVID first approached AVJennings on 2 August 2024 with a preliminary non-binding offer.
AVJennings is one of Australia's leading residential property developers, specialising in the development and sale of affordable homes and land across Australia and New Zealand. The company has a long history of providing quality residential projects, catering to first-home buyers, families, and investors. AVID Property Group, owned by Proprium Capital Partners, is one of Australia’s largest privately owned residential developers, with a diverse portfolio that includes master-planned communities, apartments, and land lots.
Proprium Capital Partners manages approximately $4bn in assets globally.
The proposal remains subject to several conditions, including: completion of confirmatory due diligence by AVID; approval from AVID’s Board of Directors; negotiation and execution of a Scheme Implementation Agreement (SIA); receipt of regulatory approvals from the Australian Foreign Investment Review Board (FIRB) and New Zealand’s Overseas Investment Office (OIO); court and shareholder approvals.
AVJennings’ Board has signed an Exclusivity Deed with AVID, granting the bidder exclusive rights to conduct due diligence through to 31 January 2025. The Board has indicated its intention to recommend the offer to shareholders if the conditions are met and an independent expert concludes the proposal is in the best interests of shareholders.
The Board has emphasised that no action is required from shareholders at this time and that further updates will be provided as developments occur.
AVJennings has engaged Barrenjoey as its financial adviser and Allens as its legal adviser.
Shares are up 87.88% at 62 cents on the back of the news.
