Warburg sweetens Ingenia bid to derail Peet takeover
Warburg Pincus has increased its offer for Ingenia Communities – putting fresh pressure on the listed property group to reconsider its proposed $1 billion takeover of Peet.
The US private equity group is now offering $5.05 per security.
It first approached Ingenia in August with a $4.75 per security, but the bid was rejected by the board.
Both offers are conditional on Ingenia quitting a planned acquisition of residential developer Peet, which realestatesource.com.au reported about last month.
Warburg lifts Ingenia bid
Warburg said Ingenia declined to engage with the revised proposal, which it said valued the group at about $3 billion on an enterprise value basis.
The latest bid is 6.3 per cent higher than the first and represents an 18.5pc premium to Ingenia’s share price before its Peet deal was announced (continues below).
Ingenia has continued to back the Peet acquisition, which would give it access to Peet’s large residential development pipeline and expand its exposure beyond its existing land-lease communities business.
Warburg said it had committed equity and debt financing available for the proposed takeover and that any binding offer would not be subject to a financing condition.
The private equity group said there was now a limited window to progress its proposal before the Peet transaction reaches its second court hearing.
It added it remained open to a friendly deal recommended by the Ingenia board.
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