Australia’s Ingenia rejects $1.4 bln Warburg Pincus buyout bid

Australia’s Ingenia Communities Group (ASX:INA) has declined an unsolicited takeover approach from private equity firm Warburg Pincus that valued the company at roughly A$1.9 billion ($1.4 billion), asserting that the bid significantly undervalued the property group.

Ingenia said on Monday that Warburg Pincus and its affiliates had proposed acquiring all of the company’s issued securities for A$4.75 each in cash under a scheme of arrangement.

The indicative, non-binding offer remained conditional on due diligence, regulatory approvals, and a unanimous recommendation from Ingenia’s board.

The proposal also required Ingenia to abandon its planned acquisition of Peet Limited, and the offer price would be reduced by any distributions paid before completion of the transaction.

Ingenia said the proposed Peet acquisition was a key pillar of its strategy, giving it a development pipeline to support future growth.

The company has appointed UBS and Denison Partners as financial advisers and Gilbert + Tobin as legal adviser.