US private equity firm Stonepeak to acquire NZ's Arvida Group in $746 mln deal (updated)

Arvida

22/07/2024 02:38

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      Cash offer stands at NZ$1.70 per Arvida share
    

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      Bid reflects 65% premium to stock's last close
    

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      Shares surge as much as 57.3% to more than two-year high
    

  
 (Adds Arvida enterprise value in third paragraph and Stonepeak
quote in fourth paragraph)
       July 22 (Reuters) - U.S.-based private equity firm
Stonepeak said it would buy New Zealand's Arvida Group  ARV.NZ 
for NZ$1.24 billion ($745.74 million) excluding debt, sending
the aged care provider's shares up nearly 60% on Monday to the
highest in more than two years.
    Stonepeak, which has assets of around $71.2 billion, said it
would offer NZ$1.70 per Arvida share, a 65% premium to Arvida's
last close on Friday. The all-cash bid was backed by Arvida's
board, and the target said it was not subject to any financing
or due diligence conditions.
    Arvida's enterprise value, taking into account debt, will be
$1.25 billion, Stonepeak said in a statement.
    "With its established portfolio, attractive development
pipeline, and long-term demand tailwinds ... Arvida represents a
compelling investment opportunity for our Asia infrastructure
strategy," said Stonepeak senior managing director Darren Keogh,
adding New Zealand's ageing population made the firm attractive.
    Shares of Arvida gained as much as 57.3% to NZ$1.62 to hit
their highest levels since June 3, 2022. 
    Shares of rivals such as Ryman Healthcare  RYM.NZ  and
Summerset  SUM.NZ  on Monday jumped 7.7% and 2.25% respectively
on the likelihood there could be further sector consolidation.
    Last December, Arvida said it had received a takeover
approach of NZ$1.70 per share from an unnamed offshore
infrastructure fund in September. 
    Arvida rejected it on account of the offer being highly
conditional and not in the best interests of shareholders.
    Arvida, however, accepted Stonepeak's takeover offer on the
basis the deal offered compelling value and high certainty to
completion.
    Reuters could not immediately confirm if Stonepeak was the
firm that had previously offered to take Arvida private. 
    ($1 = 1.6628 New Zealand dollars)

 (Reporting by Lucy Craymer, Scott Murdoch and Rishav
Chatterjee; Editing by Chris Reese, Sherry Jacob-Phillips and
Jamie Freed)
 ((Rishav.Chatterjee@thomsonreuters.com;))