Aussie’s porous press was hard at work yesterday morning as both the AFR and Australian reported AVID Property interloping for Ingenia (INA AU). Ingenia subsequently confirmed the bid.
Including the 1H27 A$0.05/share distribution (up to), AVID’s NBIO, via a Scheme, is A$5.40/share. Ingenia has granted AVID six weeks of “soft” due diligence; and terminated Warburg’s data room access.
As with Warburg’s NBIO, AVID’s terms are conditional on Ingenia ditching its Peet Ltd (PPC AU) Scheme. That Offer looks toast. Right here, Peet is attractive.
The Trade:
Both bids are indicative.
Currently at a 6.9% gross spread to AVID’s terms.
A firm Offer is likely.
Even more likely is Peet’s Scheme being terminated.
At these levels, I’d be picking up Peet here and on weakness.
This insight is labelled bullish as I’m not bearish Ingenia here.