Ho Bee Land joins race to acquire Australian property developer AVJennings
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Ho Bee Land currently indirectly holds a 5.49 per cent stake in AVJennings.
PHOTO: ST FILE
SINGAPORE – Real estate group Ho Bee Land has launched a non-binding indicative offer to acquire all shares it does not indirectly own in AVJennings for A$0.70 apiece. Both companies are Singapore-listed.
Ho Bee’s bid beats an existing offer of A$0.67 a share made by Proprium Capital Partners and Avid Property Group.
In November last year, AVJennings announced that it received an unsolicited, incomplete and non-binding indicative proposal from the two companies, through its investment vehicle PM Nominees C, to buy all outstanding shares by way of a scheme of arrangement.
Ho Bee Land said on Jan 15 the total consideration of the deal would amount to about A$390.7 million (S$330.5 million).
It currently indirectly holds a 5.49 per cent stake in the Australian-based residential property development company.
“The proposed transaction represents a good opportunity for the group to enhance its scale and capabilities in Australia,” noted Ho Bee Land.
It added: “The merged Australian business will have a stronger financial position, increased revenue potential and enhanced business’ capability to compete on a national level.”
The proposed deal is subject to the entry into a scheme implementation deed and other definitive documents after negotiations between both companies, among other factors.
Ho Bee Land noted that the proposed transaction is not expected to have a material impact on the company’s consolidated net tangible assets per share or earnings per share for the financial year ending Dec 31, 2025.
Shares of Ho Bee Land were trading unchanged at $1.83 as at 11.04am on Jan 15. AVJennings was also flat at A$0.63 on the Singapore Exchange. THE BUSINESS TIMES
