Aventus (AVN), co-developed in 2004 by Brett Blundy and Darren Holland, and listed six years ago, is intending to merge with the 11 month old Home Co managed Daily Needs REIT (HDN).
If approved, the entity would hold a portfolio worth $4.1 billion.
Its market capitalisation would circle $3.2b.
The boards of both groups would need to support the deal.
“We believe the merger is strategically and financially attractive for both HDN and AVN and consistent with HDN’s objective to deliver stable and growing distributions, HDN chair Simon Shakesheff said of the proposal.
“The increased scale and enhanced capability will allow the merged group to unlock significant value that would not have been accessible on a standalone basis,” according to the executive.
AVN chairman Bruce Carter added the merger would suit its securityholders “both because of the potential offered by being part of the larger merged groups and because the offer reflects a material premium to Aventus’ trading price”.
Under the plan, HDN would acquire all AVN securities via scheme arrangements (story continues below).
The unit price – $3.82 – reflects a 15.3 per cent premium to AVN’s ($3.31) value last Friday.
Should it be approved, Mr Holland would become HDN’s chief executive officer while Lawrence Wong will step into the role of chief financial officer.
The merger would create Australia’s largest Daily Needs REIT.
“The industrial logic of this transaction is very compelling for HDN unitholders and AVN securityholders,” HomeCo chief executive officer David Di Pilla said.
“The combination of HDN and AVN creates a leading ASX listed Daily Needs REIT with a highly strategic portfolio $4.1b portfolio of last mile logistics infrastructure in Australia’s leading metropolitan growth corridors”.
The entity would be planning to grow funds under management to $5b by the end of next year.
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