Ingenia Communities Offers A$992.5 Million to Acquire Peet

Ingenia Communities has offered to acquire residential developer Peet in a deal valuing the company at A$992.5 million. Under the proposed terms, Peet shareholders would receive A$0.68 in cash and 0.3367 Ingenia stapled securities per share, a 17.1% premium over the August 21 closing price.

The acquisition aims to bolster Ingenia's position in the Australian housing market after the company faced declining sales volumes and reduced government tax concessions for investment properties. A primary driver of the deal is the Flagstone City master-planned community project in south-east Queensland, which Ingenia values at A$615 million through a proposed joint venture.

Peet's board unanimously recommended the offer, and its largest shareholder, Scorpio Nominees, intends to accept. Market reaction following the announcement saw Peet shares close 11.1% higher, while Ingenia shares fell 6.3%.