Australia’s Ingenia rejects sweetened $1.5 bln Warburg Pincus takeover bid

Australia's Ingenia Communities Group (ASX: INA) has rejected a revised takeover offer from private equity firm Warburg Pincus, stating that the increased proposal still undervalues the company. Warburg Pincus and its affiliates proposed A$5.05 in cash per share (excluding any distributions paid by Ingenia prior to implementation), valuing the company at around A$2.1 billion ($1.5 billion) based on its current market capitalisation.

This revised offer is a step up from the initial proposal of A$4.75 per stapled security. The deal is contingent upon due diligence, regulatory approvals, documentation, and Ingenia's board unanimously recommending the transaction. Additionally, Ingenia must abandon its proposed acquisition of Peet Ltd (ASX: PPC). Shares of Sydney-listed Ingenia were up 1.3% to A$4.375 as of 04:46 GMT, marking its seventh consecutive day of increases.

The company's board expressed openness to proposals that offer compelling value and are in the best interests of securityholders. Ingenia operates 96 communities and development sites across Australia, primarily focused on senior rental and holiday accommodation.