Australia’s Ingenia Communities shares rise on AVID’s $1.5 bln bid

Australian retirement and holiday community operator Ingenia Communities (ASX:INA) said on Monday it had received an indicative takeover proposal from AVID Property Group, sending its shares higher.

AVID has proposed acquiring all of Ingenia's stapled securities for A$5.35 apiece in cash, with backing from a global sovereign wealth fund and a global financial sponsor, Ingenia said in a stock exchange filing.

The offer would allow for a distribution of up to 5 Australian cents per security, taking the potential total consideration to A$5.40 per security.

The indicative proposal represents a 13.4% premium to Ingenia's last closing price, and values it at A$2.2 billion ($1.5 billion).

Sydney-listed Ingenia shares rose 5.4% to A$5.015 by 03:14 GMT.

Ingenia said it had granted AVID a period of soft exclusivity of up to six weeks to progress discussions, but had not determined that the proposal was superior to its existing agreement with Peet Ltd, under which Ingenia plans to acquire the property developer.

The proposal intensifies a takeover contest after private equity firm Warburg Pincus made a revised offer of A$5.25 per security.

Ingenia said there was no certainty the proposal would lead to a binding offer or a completed transaction.