US private equity firm Stonepeak is to acquire NZ's Arvida Group in a $746 million deal
(Reuters) – U.S.-based private equity firm Stonepeak said it would buy New Zealand's Arvida Group for NZ$1.24 billion ($745.74 million) without debt, sending shares of the elderly care provider up nearly 60% on Monday to their highest in more than two years. .
Stonepeak, which has assets of about $71.2 billion, said it would offer NZ$1.70 per Arvida share, a 65% premium to Arvida's last close on Friday. The all-cash bid was sponsored by Arvida's board, and the target said it was not subject to any financial or due diligence conditions.
Arvida's business value, taking into account debt, will be $1.25 billion, Stonepeak said in a statement.
“With its established portfolio, attractive development pipeline, and long-term needs … Arvida represents an investment opportunity that complements our Asia infrastructure strategy,” said Stonepeak managing director Darren Keogh, adding that New Zealand's aging population makes this the company is attractive.
Arvida shares gained about 57.3% to NZ$1.62 to reach their highest levels since 3 June 2022.
Shares of rivals such as Ryman (NYSE: ) Healthcare and Summerset on Monday rose 7.7% and 2.25%, respectively, on the possibility of a further strengthening of the sector.
Last December, Arvida said it had found a way to take NZ$1.70 per share from an unnamed offshore infrastructure fund in September.
Arvida declined because the offer was highly conditional and not in the best interests of the shareholders.
Arvida, however, accepted Stonepeak's takeover offer on the basis the deal offered compelling value and high certainty for completion.
Reuters could not immediately confirm that Stonepeak was the company that had previously offered to take Arvida private.
($1 = 1.6628 New Zealand dollars)
