Ingenia Rejects Non-Binding $4.75-a-Security Proposal

Ingenia Communities Group (ASX:INA) has advised that it has received an unsolicited, conditional, non-binding indicative proposal from Warburg Pincus LLC and/or its affiliates to acquire 100 per cent of the issued securities of Ingenia via a scheme of arrangement at a price of $4.75 cash per security. The release states the proposal is subject to various terms and conditions, including satisfactory completion of due diligence, documentation, regulatory approvals, unanimous recommendation of the Ingenia board, and Ingenia not proceeding with the proposed acquisition of Peet Limited. The price payable under the proposal would be reduced by the amount of any future distributions paid by Ingenia prior to implementation.

After consideration that included assistance from its financial advisers and external legal counsel, the Ingenia board determined that the proposal substantially undervalues Ingenia and is not in the best interests of its security holders. The board said it is confident in Ingenia's strategic direction and growth trajectory, pointing to strong long-term structural tailwinds supporting continued growth in the land lease communities sector and to the attractiveness of its holiday parks business in providing affordable holiday accommodation, and said it considers the proposed acquisition of Peet an important component of Ingenia's strategy, securing a development pipeline expected to support growth and product delivery over time. Ingenia said security holders do not need to take any action in relation to the proposal. The company has appointed UBS and Denison Partners as financial advisers and Gilbert + Tobin as legal adviser in relation to the proposal, which was authorised for lodgement by the Chair.