Shares of Australian home builder AVJennings Ltd (ASX:AVJ) soared 88% on Thursday following a buyout bid from U.S. private equity firm Proprium Capital Partners through its AVID Property Group unit. Key details of the deal:
- Offer Value: Proprium proposed A$0.67 per share in cash, valuing AVJennings at approximately A$373.7 million ($242 million), a 103% premium to its prior closing price.
- Dividend Proposal: AVID also allowed for a special A$0.06 per share dividend as part of the agreement.
- Share Price Reaction: AVJennings’ shares surged to A$0.62, with an intraday high of A$0.65.
- Board Recommendation: AVJennings’ board is engaging with the proposal and has recommended shareholders approve the deal.
The announcement has significantly boosted market confidence in the Australian builder, signaling strong interest in the sector from global private equity players.