Arvida Group’s board backs takeover offer from New York-headquartered Stonepeak

The board of national NZX-listed retirement giant Arvida Group, with assets valued at $4.2 billion, has recommended shareholders accept a takeover offer at $1.70/share.

That offer is 65% above the $1.03 shares were trading at on Friday.

Arvida has entered into an agreement with Stonepeak BidCo for the sale of 100% of Arvida shares for $1.70 per share in cash by means of a scheme of arrangement, according to an NZX announcement today.

American-headquartered Stonepeak manages US$71.2b assets.

“The Arvida board unanimously recommends that shareholders vote in favour of the scheme, subject to the scheme consideration being within or above the independent adviser’s valuation range for Arvida shares and in the absence of a superior proposal.”

The scheme represents a 65% premium to Arvida’s share price of $1.03 per share.

Arvida said its board and executive committee had engaged with Stonepeak to facilitate the agreement and were committed to concluding the sale.

Arvida directors unanimously recommend shareholders vote in favour of it, subject to no better offer being received and advisers concluding it was a good deal.

The scheme is subject to a number of conditions, including New Zealand High Court approval, approval at a special meeting of shareholders of Arvida and consent under the Overseas Investment Act 2005.

Stonepeak has carried out a comprehensive due diligence evaluation of Arvida and committed to proceed with the acquisition subject to receipt of customary regulatory and shareholder approvals.

Those approvals included consent of the statutory supervisor for Arvida’s villages, together with other customary conditions.

The scheme is not subject to financing or due diligence conditions, today’s announcement said.

New York-headquartered Stonepeak described itself as specialising in infrastructure and real assets, investing capital on behalf of more than 270 investors.

It said those investors included pensions, endowments and other large institutions from around the world.

It has offices in London, Hong Kong, Singapore, Houston and Sydney.

Cameron Partners, Forsyth Barr and Chapman Tripp are advising Arvida.

Grant Samuel has been engaged to prepare an independent adviser’s report to help Arvida shareholders assess the proposal’s merits.

Arvida has 35 retirement villages throughout New Zealand.

Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.