Australia’s AVJennings soars nearly 100% on $242 mln private equity bid

Shares of Avjennings Ltd (ASX:AVJ ) nearly doubled in value on Thursday after the Australian home builder received a buyout offer from American private equity firm Proprium Capital Partners (WA:CPAP ).

AVJennings’ Sydney shares surged about 88% to A$0.620, having risen as high as A$0.650 earlier in the session. 

Proprium, through its AVID Property Group unit, offer $0.67 per share in cash for AVJennings, valuing the home builder at around A$373.7 million ($242 million).

The per-share figure represents a 103% premium to AVJennings’ close on Wednesday. 

Avid also proposed to allow AVJennings to pay a A$0.06 per share as part of the takeover deal. 

AVJennings’ board of directors said it was engaging with the offer, and recommended that shareholders vote in favor of the deal. 

Source: Investing.com