(Reuters) – U.S. private equity firm Stonepeak is to buy New Zealand's Arvida Group for NZ$1.24 billion ($745.74 million) excluding debt, as the investment firm seeks to capitalize on demand for retirement and aged care services.
Stonepeak, which has assets of about $71.2 billion, said late Sunday it is offering NZ$1.70 per share for Arvida, reflecting a 65% premium to Arvida's last close on Friday.
“Demand for high-quality retirement housing in New Zealand has demonstrated strong resilience through cycles and attractive growth in recent years,” Stonepeak said in a statement.
Arvida said on Monday it had accepted the offer, which was not subject to any financing or due diligence conditions.
Arvida said in December that it had received a takeover proposal in September, without giving further details on the timing of the offer.
The company's shares hit a monthly high of NZ$1.26 on September 22. The stock has since fallen 18.5% to close at NZ$1.03 on Friday.
In December, Arvida rejected the same takeover offer for NZ$1.70 per share from an offshore infrastructure fund on the grounds that the offer was too conditional and not in the interests of shareholders.
However, Arvida accepted Stonepeak's takeover offer on the basis that the deal offered attractive value and high certainty of closing.
Reuters could not immediately confirm whether Stonepeak was the firm that had previously offered to take Arvida private.
($1 = 1.6628 New Zealand dollars)
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