Aevum considers merger with FKP Property Group
Retirement home provider Aevum Limited (ASX: AVE) has opened the table for a number of companies.
Aevum is considering a merger with the FKP Property Group after rejecting Stockland's $266 million offer. FKP is a leading Australian property and investment group which owns and manages 10,213 units in 80 retirement villages across Australia.
An agreement is yet to be reached with FKP's listed subsidiary, Forest Place Group Limited (ASX: FPG). Valuation firm Lonergan Edwards and Associates Limited valued Aevum at $2.07 a share.
The valuation prompted Aevum’s board to reject Stockland Corporation Limited (ASX: SGP) offer of $1.50 a share or a total of $266 million. In a media statement to its shareholders, the board considered the offer as neither fair nor reasonable.
The average broker valuation puts Aevum at $2.05 per share. The company's net tangible assets (NTA) is $2.02 per share. Greenhill Caliburn and Minter Ellison has been guiding the retirement group while Stockland seeks advice with Deutsche Bank.
Stockland's holds 16.07 percent of Aevum shares. Its offer closes on September 30.
Aevum, in 2009, entered into a merger agreement with the IOR Group Limited (ASX: IOR). The merger incorporated IOR's South Australia, Victoria and Queensland villages into the Aevum portfolio. The merger completed on 29 January 2010 increased Aevum's total retirement village numbers to 30.