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- HomeCo Daily Needs REIT (HDN) and Home Consortium (HMC) collectively agreed to a merger with Aventus (AVN)
- Both the HDN and AVN boards unanimously support the merger, believing it to be a once-in-a-lifetime opportunity to generate substantial value for HDN and AVN share holders
- The deal will create Australia’s largest Daily Needs REIT with a combined portfolio size of $4.1 billion and market capitalisation of approximately $3.2 billion
- The current implied offer price of $3.82 represents a 15.3 per cent premium to AVN’s last close price
- Shares in AVN closed up 4.53 per cent to $3.46; HDN is down 6.85 per cent to $1.50 and HMC is up 2.40 per cent to $7.68
HomeCo Daily Needs REIT (HDN) and Home Consortium (HMC) have collectively agreed to a binding scheme implementation deed with Aventus (AVN) to purchase all AVN stocks via schemes of arrangement.
Both the HDN and AVN boards unanimously support the merger, believing it to be a once-in-a-lifetime opportunity to generate substantial value for HDN and AVN share holders.
BB Retail Capital, which holds a voting interest in approximately 22.6 per cent of Aventus shares has also said it intends to vote in favour of the merger.
The deal, which is subject to conditions, will create Australia’s largest Daily Needs REIT with a combined portfolio size of $4.1 billion and market capitalisation of approximately $3.2 billion.
HDN Chair Simon Shakesheff said the merger would deliver stable and growing distributions.
“The increased scale and enhanced capability will allow the merged group to unlock significant value that would not have been accessible on a standalone basis,” he said.
Under the merger, AVN securityholders will receive consideration with an implied value of $3.823 per AVN security comprising of 2.200 HDN units for every unit in Aventus Retail Property Fund (APRF) and $0.285 cash or 0.038 HMC share for every one share in Aventus Holdings Limited (AHL).
The current implied offer price of $3.82 represents a 15.3 per cent premium to AVN’s last close price, 16.4 per cent to AVN’s one month VWAP and 41.9 per cent to AVN’s NTA per security.
Each AVN securityholder can choose between receiving cash or HMC securities as payment (but not both), with cash being the default option.
AVN Chairman Bruce Carter said the deal was attractive for Aventus shareholders.
He said after careful consideration, the Aventus Board concluded that the merger is in the best interests of security holders, with the deal subject to no superior proposal emerging and the Independent Expert concluding that the merger is in the best interests of Aventus securityholders.
Following the Merger, AVN’s Darren Holland and Lawrence Wong will be offered positions as CEO and CFO, respectively, at HDN. The HDN Board will also include current AVN directors Darren Holland, Bruce Carter and Robyn Stubbs.
The companies believe the merger will be eligible for S&P/ASX200 index inclusion with a pathway towards S&P/ASX100 index inclusion over time.
Shares in AVN closed up 4.53 per cent to $3.46; HDN is down 6.85 per cent to $1.50 and HMC is up 2.40 per cent to $7.68.
