Property Developer Villa World Agrees To Private Equity Buyout

By Glenn Dyer | More Articles by Glenn Dyer

Small Queensland residential developer Villa World has agreed to be taken over by private equity-backed Avid Property.

Villa World’s board yesterday recommended the deal at $2.3451 a share.

That’s a revised price to the initial offer of $2.33 made in March by Avid.

The offer values Villa World at $293.6 million.

The new higher price is a 17.8% premium to the Villa World closing share price of $1.99 on March 14, being the last closing price of Villa World shares prior to the announcement of the initial proposal received from AVID and announced to the market on March 14.

Under the deal Villa World is allowed to pay a final dividend and/or a special dividend on or prior to implementation of the Scheme of Arrangement.

“The Scheme Consideration will be reduced by the cash amount of any such Final Dividend and/or Special Dividend.

“The size of any potential Final Dividend and/or Special Dividend (if declared) will be determined by the Board of Villa World having regard to a range of factors, including the availability of franking credits.

“Details of any Final Dividend and/or Special Dividend will be provided in the explanatory document to be circulated to shareholders in relation to the Scheme,” director said.

Villa World says it has appointed Grant Samuel to do the independent experts report for the Scheme of Arrangement.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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