Warburg Pincus Makes Improved $1.5 Billion Offer for Australia’s Ingenia
The private-equity group’s latest offer is more than 10% higher than its initial proposal
- Warburg Pincus made an improved 1.50 billion U.S. dollar offer for Australia’s Ingenia Communities.
- The latest proposal is nearly 4% higher than the offer Ingenia rejected a week ago and more than 10% higher than an initial approach.
- Warburg Pincus is only interested in Ingenia if the company halts its proposed acquisition of Australia-listed home builder Peet.
SYDNEY—Warburg Pincus has made an improved US$1.50 billion offer for Australia’s Ingenia Communities INA 6.00%increase; green up pointing triangle, telling the retirement village operator that it wants full access to its books by the end of this week.
Ingenia, which owns retirement villages and holiday parks in Australia, said Monday that the New York-based private-equity group had raised its indicative all-cash offer to 5.25 Australian dollars a share, equivalent to US$3.69.
That is nearly 4% higher than the A$5.05-a-share proposal Ingenia rejected a week ago, and more than 10% higher than an initial A$4.75-a-share approach in early September.
ASX-listed Ingenia said it received the latest offer late Friday and that its board is still assessing it.
About half an hour into Monday’s trading session, Ingenia shares were up 6.8% at A$4.805.
Ingenia said the proposal is subject to several conditions, including that by Oct. 2 it agrees to the terms of full due diligence and confirms its intention to recommend the proposal.
“The board has not yet formed a view on the merits of the further revised indicative proposal, including the acceptability of the conditions,” Ingenia said in a market filing.
Warburg Pincus, which has more than US$10.0 billion invested in Asia-Pacific real-estate platforms and ventures, reiterated that it is only interested in Ingenia if the company halts its proposed acquisition of Australia-listed home builder Peet.
Warburg Pincus already has exposure to Asia-Pacific retirement living through a joint venture with South Korean developer SK D&D.
Seeding the venture in 2025 with three high-quality, strategically located assets in Seoul, the venture is designed to cater to the country’s rapidly growing elderly population.