Private US equity firm, Stonepeak, has proposed a NZD $1.3 billion takeover offer to Arvida.
The offer of NZD $1.70 per share was at a 65 percent premium to Arvida's closing price on Friday. A similar bid was rejected by Arvida in September last year, disclosed as inadequate.
In a letter outlining the Scheme to its shareholders, the Arvida Board has unanimously recommended that shareholders vote in favour of the scheme, which is subject to the scheme consideration being within or above the independent adviser's valuation range for Arvida shares and in the absence of a superior proposal. The Board concluded the offer price of NZD $1.70 per share in cash represents compelling value given the material premium, high certainty to completion and overall attractiveness to Arvida shareholders. Grant Samuel has been engaged to prepare the Independent Adviser’s Report to assist Arvida’s shareholders in assessing the merits of the Scheme.
Arvida's Board and executive committee have actively and cooperatively engaged with Stonepeak to facilitate this agreement and are committed to concluding the sale.
The scheme is subject to a number of conditions, which include New Zealand High Court approval, approval at a special meeting of shareholders of Arvida and consent under the Overseas Investment Act 2005.
Arvida said its shareholders do not need to take any action at the current time. A scheme booklet containing information relating to the Scheme, the reasons for the Independent Adviser's Report, will be sent to Arvida shareholders in Q3 2024.
The Board has also encouraged shareholders to carefully consider all the materials that will be provided to them and seek their own professional advice when it comes to the vote, either in person or by proxy. Shareholders will have the opportunity to vote on the Scheme at a meeting in Q4 2024. If all conditions are satisfied or, when capable of waiver, waived, the Scheme is expected to be implemented in late 2024.
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