Warburg Pincus moves closer to Ingenia bid
Warburg Pincus has moved a step closer to a potential takeover of Ingenia Communities, gaining access to initial due diligence as it tries to turn its $5.25-a-security proposal into a firm offer.
The US private equity firm expects to complete the work and reconfirm its proposal within two weeks.
That puts the pressure back on Ingenia’s board, which is weighing the offer against its existing deal to acquire residential developer Peet.
Warburg Pincus has now made three approaches for Ingenia, increasing its proposal from $4.75 then $5.05 per stapled security.
Due diligence opens
Ingenia has given Warburg Pincus initial, non-exclusive access to due diligence.
The company is continuing to progress the Peet deal under its existing scheme implementation deed.
Warburg Pincus’ latest proposal values Ingenia at about $2.14 billion and is conditional on, among other things, satisfactory due diligence and Ingenia terminating its agreement to acquire Peet.
A Warburg Pincus spokesperson said the firm remained committed to a friendly, board-recommended transaction (continues below).
“We look forward to commencing that work promptly, with the objective of reconfirming our $5.25 per stapled security proposal and providing the Ingenia Board with greater transaction certainty within two weeks,” they added.
Peet deal in the balance
Ingenia agreed in August to acquire Peet through a combination of cash and Ingenia securities.
The proposed transaction was valued at about $1 billion when announced and would give Ingenia a larger residential development platform and land bank.
That deal has become the central fault line in the takeover contest.
Warburg Pincus has made walking away from the Peet acquisition a condition of its proposal, while some Ingenia investors have questioned the increased exposure to residential development and dilution associated with the Peet transaction.
Subscribe to our newsletter at the bottom of this page.
