Australia’s Ingenia jumps on improved $1.5 bln Warburg Pincus bid

On Monday, Ingenia Communities (ASX:INA) stock surged following a revised takeover offer from U.S. private equity firm Warburg Pincus. The Australian retirement living and holiday parks operator's shares climbed as high as 8.7% to A$4.89, marking their highest level since January 29. By 05:13 GMT, the company's shares had climbed 5.7% to A$4.755.

Ingenia confirmed it was reviewing a third non-binding indicative proposal from Warburg Pincus, which valued the company at A$5.25 per stapled security, a 4% increase from its previous A$5.05 offer. The latest proposal puts Ingenia's value at roughly A$2.14 billion ($1.5 billion). Ingenia had previously dismissed the A$4.75 and A$5.05 offers, stating they undervalued the company.

The board has not yet decided on the latest proposal or its conditions. Warburg's offer remains contingent on Ingenia abandoning its planned A$711 million acquisition of property developer Peet, as well as compliance with due diligence and other requirements. The bidder has until October 2 to secure Ingenia's agreement to the conditions, including full due diligence and a pledge that the board will recommend the offer once due diligence begins.