Ingenia Communities, the Australian retirement village group, said it rejected a conditional, non-binding indicative proposal from private equity firm Warburg Pincus. The approach valued Ingenia at A$1.9 billion, or roughly $1.4 billion, and priced the company at A$4.75 per security. The decision was announced in a stock exchange notice on Monday.
One condition of the approach was that Ingenia not proceed with its planned acquisition of Peet Limited. Ingenia pushed back, saying the Peet acquisition is an important part of its strategy because it would add a significant development pipeline. The company also pointed to value, stating the A$4.75 per security proposal "substantially undervalues the company and is not in the best interests of its security holders." For context, last month Peet's board gave unanimous backing to Ingenia's offer for the company.
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UBS and Denison Partners are acting as Ingenia's financial advisers. The Warburg Pincus proposal was conditional on Ingenia not proceeding with the Peet acquisition. Ingenia describes the Peet transaction as a key element of its strategy because it would add a substantial development pipeline.
