Warburg Pincus raises Ingenia bid, brings in Lederer, Discovery Parks
Warburg Pincus has lifted its proposed takeover price for Ingenia Communities to $5.50 per stapled security, including a permitted distribution, and lined up Australian partners to take parts of the holiday park and gardens businesses.
The New York-based private equity firm’s third revised proposal comprises $5.45 cash per security, plus a distribution of up to 5 cents.
It tops AVID Property Group’s rival proposal – reported by realestatesource.com.au on Monday – by 10 cents per security, including the respective permitted distributions.
Under the proposed structure, Warburg Pincus would acquire Ingenia’s land lease communities business, Discovery Parks would take the holiday parks portfolio and LDR Capital, a subsidiary of the Lederer family office chaired by Paul Lederer, would acquire the gardens business.
The proposal values Ingenia’s equity at about $2.2 billion and the group at an enterprise value of about $3.2b.
Warburg Pincus says it has completed initial due diligence and is ready to proceed with confirmatory work and negotiations on binding documents (continues below).
The proposal remains non-binding.
Ingenia is also weighing AVID’s competing offer as the takeover contest unfolds alongside its proposed acquisition of Peet.
AVID is being backed by Abu Dhabi sovereign wealth fund Mubadala Investment Company and global asset manager Brookfield.
The Peet deal would be off the table with a purchase by either AVID or Warburg Pincus.
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