Australian home builder AVJennings has announced a fully franked special dividend of $0.167 per share. This dividend is conditional on the successful completion of the proposed acquisition by American real estate firm Proprium Capital Partners. AVJennings specialises in the design, construction, and sale of residential housing across Australia. The company aims to create quality communities for homeowners.
The takeover is structured as a scheme of arrangement, contingent upon shareholder approval. Should the scheme proceed as planned, the offer price for AVJennings shares will be adjusted to $0.488 per share. This reduction reflects the value of the special dividend being distributed to shareholders prior to the finalisation of the acquisition.
The record date for the special dividend is set for July 29, with the payment expected to be made on August 6. The final scheme payment is scheduled for August 14, marking the completion of the acquisition process, assuming all conditions are met. AVJennings has sought a class ruling from the Australian Taxation Office (ATO) regarding the tax implications of both the dividend and the share disposal related to the scheme. While the application has been made, a ruling is not anticipated before the scheme’s implementation.
Upon issuance, the ATO’s ruling will be accessible on its official website. The Supreme Court is slated to convene on July 23 to deliberate on the proposed takeover and determine whether to grant its approval, a critical step in finalising the deal.
