Property giant Home Consortium (ASX:HMC) and its real estate investment trust HomeCo Daily Needs (ASX:HDN) have entered into a binding scheme implementation deed to acquire Aventus Group (ASX:AVN).
The merger brings together HomeCo Daily Needs (HDN) and fund manager Aventus’ (AVN) portfolios to accelerate Home Consortium’s (HMC) growth, with external assets under management increasing to around $5 billion, up 127 per cent versus FY21, which is 12 months ahead of the company’s stated $5 billion 2022 target.
“The industrial logic of this transaction is very compelling for HDN unitholders and AVN securityholders. The combination of HDN and AVN creates a leading ASX listed Daily Needs REIT with a highly strategic $4.1 billion portfolio of last mile logistics infrastructure in Australia’s leading metropolitan growth corridors,” said HMC CEO David Di Pilla.
Under the terms of the merger, AVN security holders will receive $3.82 per AVN security, comprising 2.200 HDN units for every 1 unit in Aventus Retail Property Fund (ARPF) and $0.285 cash or 0.038 HMC securities for every 1 share in Aventus Holdings. Each Aventus security holder may elect to receive cash or HMC securities as consideration (but not a combination of both) with default consideration being cash. The current offer price of $3.82 represents a 5.3 per cent premium to AVN’s closing price last Friday.
HMC is contributing 7 per cent to the acquisition and will externally manage the merged group, with a 13.5 per cent interest following implementation. HDN is contributing 93 per cent to acquire 100 per cent of ARPF, which holds all of AVN’s real estate assets. Both AVN and HDN boards unanimously support the merger and believe it represents a unique and compelling opportunity to create significant value for both HDN unitholders and AVN securityholders.
“This transaction is consistent with our strategy to build high quality portfolios exposed to powerful megatrends and enhanced by best-in-class management teams.”
Shares in Home Consortium (ASX:HDN) are trading 0.4 per cent higher at $7.53. Shares in HomeCo Daily Needs (ASX:HDN) are trading 7.8 per cent lower at $1.48. Shares in Aventus (ASX:AVN) are trading 4.2 per cent higher at $3.45.