Aevum awaits decision of Stockland Corp
Retirement village operator Aevum Limited (ASX: AVE) awaits an updated opinion after property investment firm Stockland Corporation Limited (ASX: SGP) increased its bid.
A representative from the retirement operator said. “The updated report from the independent expert is expected shortly and following due consideration of all factors . . . the Aevum board will promptly advise shareholders of its recommendation in relation to Stockland's increased offer.”
Stockland boosted its offer for Aevum to $1.77 per share plus Aevum's 3 cents per share final dividend. The proposal values Aevum at $320 million. Monday's offer is open until September 30.
Lonergan Edwards and Associates valued Aevum between $1.91 and $2.22 a share after Stockland's first attempt at Aevum. The financial adviser declared a mid-point value of $2.07. Shares in Stockland dropped 12 cents to $3.92 but Aevum remained at $1.80.
Aevum even considered a merger with a subsidiary of the FKP Property Group. The FKP proposal through Forest Place Group is based on net tangible asset (NTA) backing. Under the proposal, $2.66 will be for Forest Place and $2.02 for Aevum.
Stockland owns 14.8 percent of FKP.
Aveum shareholders are expected to be advised again to hold on to their shares until the independent advice comes in.