On the 26th August, real estate developer Peet Ltd (PPC AU) entered into cash/scrip Offer by way of a Scheme with Ingenia Communities (INA AU).
The Scheme appeared clean. Decent premium to NTA. Major shareholder (of Peet) support. However, Ingenia’s share price has fallen 13% since the transaction was announced.
This morning, Ingenia announced it has received, and rejected, a NBIO of A$4.75/share (in cash) from Warburg Pincus. The proposal is contingent on Ingenia not proceeding with the Peet Offer.
The Trade:
Buy Ingenia.
Warburg’s proposal will get the market talking.
$4.75/share is low/opportunistic - a ~30% premium to last close, but more like ~10% to undisturbed.
Note: under the Peet/Ingenia Scheme, Peet’s A$0.065/share final dividend goes ex on the 8th September.