Warburg has thrice bid higher than AVID’s intial A$5.40/share Offer for Ingenia Communities (INA AU); only for AVID to twice match Warburg’s terms, keeping its Process Deed in check.
AVID’s latest matching rights proposal does entitle Warburg (and Discovery Park & LDR Capital) due diligence; but only until the 13th November. AVID’s own exclusive due diligence ends 14th December.
That concession doesn’t go far enough. These two cashed-up suitors should be afforded equal due diligence to put their best offer forward.
The Trade:
Both bids remain indicative.
Currently at a 5.8% gross spread to Warburg/AVID’s terms.
I can see this maxxing out at A$6.00-A$6.10/share.
A firm Offer is likely.
Even more likely is Peet’s Scheme being terminated.
Peet is slowly inching up, sans the Scheme. If not in, I’d pick up shares on any on weakness.