Morningstar says Warburg Pincus bid undervalues Australia's Ingenia; shares climb
BUZZ-Morningstar says Warburg Pincus bid undervalues Australia's Ingenia; shares climb Updates
** Shares of Australia's Ingenia Communities INA.AX are up as much as 1.7% at A$4.260, after soaring 14.8% on Monday
** Land-lease community operator on Monday turned down A$1.94 billion ($1.40 billion) buyout offer from Warburg Pincus, saying bid was undervalued
** Morningstar believes bid was a "poor offer"; offer price of A$4.75 per share a 17% discount to fair value estimate of A$5.70 per share
** Morningstar believes Warburg Pincus was looking to capitalise on Ingenia's low share price, which dropped more than 13% in last week of August on news of co offering to buy Peet PPC.AX for A$992.5 million
** One of Warburg Pincus conditions is Ingenia's acquisition of Peet not proceeding
** Morningstar value-neutral on proposed Peet acquisition but thinks it introduces risks given cyclical business model
($1 = 1.3858 Australian dollars)
(Reporting by Nichiket Sunil in Bengaluru)
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