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Property company Villa World (ASX: VLW) is now one step closer to handing over the keys to new owners, after suitor AVID Property Group completed due diligence for its proposed $293.5 million takeover of the Gold Coast group.
Villa World's board slated its intention in May to unanimously recommend the proposal to shareholders, and now it has done just that after entering a scheme of implementation agreement (SIA) with AVID to buy all shares for $2.345 each.
The share price is now just shy of that figure at $2.315, representing a rise of 1.54 per cent as at 1:16pm AEST.
A shareholder vote is expected to be held in mid-October to determine whether AVID - a Sydney-headquartered property company with a $3 billion portfolio - will take control of the house and land package company.
"We're pleased to be entering into a binding transaction with AVID today which provides our shareholders the opportunity to realise their investment in Villa World at an attractive and certain price," says Villa World's independent chair Mark Jewell.
"Once the Scheme is implemented, shareholders will receive a cash payment at a meaningful premium to the trading price of Villa World shares prior to the announcement of the initial AVID proposal."
Villa World's CEO Craig Treasure (pictured) says the proposed transaction is an endorsement of the quality of the quality of the company's brand and the relationships it has built with customers, staff, suppliers and contractors, shareholders and the broader community.
"The combination of our business with AVID, bringing together the best of both companies, will provide an enhanced proposition for our customers and staff," says Treasure.
"Villa World's innovative housing platform and exposure to greenfield east coast growth corridors positions AVID to scale up across a larger portfolio of assets and future built form opportunities," adds AVID chair Anthony Kingsley.
"Combining those assets with AVID's access to capital and global property expertise will position the business to deliver on our growth and diversification strategy, with outstanding outcomes for customers."
AVID CEO Cameron Holt says the acquisition strategically combines two strong performing and complementary businesses with recognised brands and market-leading technical and service propositions.
"Leveraging the talent, expertise and systems of both businesses will create a stronger, better platform from which to grow," says Holt.
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