Battle brewing over Coast developer takeover
THE major shareholder of Gold Coast’s biggest listed developer looks increasingly willing to thwart a $280 million takeover bid from a rival property group after upping its stake twice in a week.
In an aftermarket statement to the ASX, Singaporean group Ho Bee said it held 10.45 per cent of Villa World, after buying up 1.3 million shares since March 20.
The group had already spent more than $4.5 million on Villa World shares from January 31 to March 19, lifting its voting power from 7.61 per cent.
The Australian arm of international fund manager Avid Property Group launched a bid for the Gold Coast developer on March 15, offering $2.231 per share to acquire all 125 million securities in Broadbeach-based Villa World.
Shares in Villa World, trading at $1.99 before the takeover announcement, were trading higher than the takeover offer at $2.24 when the market closed today.
The proposal, which Villa World has stressed is conditional and a long way from receiving the board’s blessing, forms part of Avid’s plans to expand its presence on the east coast.
Avid, formerly Investa Land, was bought by Proprium Capital Partners in 2015 and says it has a pipeline of $3 billion worth of broad acre and medium-density residential and industrial projects.
Ho Bee, developer of the Rhapsody tower in Surfers Paradise, partnered with Villa World to deliver an $84 million joint venture project in Melbourne and also owns the 1.13ha “service station” block of land next to Pacific Fair which is currently on the market.
Villa World, which reported a profit of $17.6 million for the half year, said it has appointed advisers to consult on the deal, which it said was subject to a range of conditions, including due diligence.