AVJennings to be Taken Private by Proprium Capital Partners
Background
AVJennings (AVJ), a Singapore and Sydney-based dual-listed property player controlled by real estate tycoon Simon Cheong, is set to be taken private after Proprium Capital Partners made an offer at 67 Australian cents per share.
Offer Details
The offer price values the company at A$374 million (S$326 million), representing a 103% premium to AVJ’s closing price on November 27 of 33 Australian cents. It is also a 102% premium to its one-month volume-weighted average price of 33.17 Australian cents on November 27 and a 108% premium to the stock’s three-month volume-weighted average price of 33.21 Australian cents on November 27.
Post-Privatization Plans
Following the privatization, AVJ will become part of Avid Property, an Australian residential and industrial developer controlled by Proprium. Avid is one of the largest privately held residential developers in Australia, with a portfolio that includes over 6,300 residential blocks with 75,000 residents and a gross revenue pipeline of A$5 billion.
About Proprium Capital Partners
Proprium is a specialist real estate investment manager with approximately A$4 billion in assets under management, including Avid, which is one of the group’s flagship investments. Proprium’s focus is on acquiring and investing in high-quality, undervalued real estate assets and partnering with experienced operators to enhance performance and unlock value.
Background on AVJ
AVJ was set up about 90 years ago as a residential property developer in Melbourne. The company is controlled by Mr. Cheong, who chairs the board of directors. The stock has been thinly traded in Singapore, largely due to the fact that its business is based in Australia.
About Simon Cheong
Cheong, 67, served two terms as president of the Real Estate Developers’ Association of Singapore, from 2007 to 2010.
History of AVJ’s Shareholders
Most of the 2,000 Singapore-based AVJ shareholders were formerly shareholders of previously-listed bookstore chain MPH. This came about when in 1999, Mr. Cheong’s SC Global acquired a controlling stake of more than 53% in AVJ through its reverse takeover of MPH. In 2002, MPH provided an in specie rights issue which distributed 0.8 AVJ shares for every existing MPH share.
Special Dividend
Proprium, through its takeover vehicle PM Nominees C, has given the nod for AVJ to pay a fully franked special dividend of up to about 6 Australian cents per share to eligible shareholders on or before completion.
Regulatory Approvals
The deal is subject to regulatory approvals in Singapore, Australia, and New Zealand.
Conclusion
The proposed privatization of AVJ represents a significant opportunity for the company to restructure and focus on its core business, while providing a return on investment for its shareholders.
FAQs
Q: What is the offer price for AVJ?
A: The offer price is 67 Australian cents per share.
Q: What is the value of the offer?
A: The offer values the company at A$374 million (S$326 million).
Q: What is Proprium’s focus?
A: Proprium is a specialist real estate investment manager with a focus on acquiring and investing in high-quality, undervalued real estate assets and partnering with experienced operators to enhance performance and unlock value.
Q: What is Avid Property’s portfolio?
A: Avid is one of the largest privately held residential developers in Australia, with a portfolio that includes over 6,300 residential blocks with 75,000 residents and a gross revenue pipeline of A$5 billion.
