The proposal by Ho Bee Land, chaired by Chua Thian Poh, is subject to conditions including satisfactory completion of due diligence, as well as receipt of all necessary internal approvals, entry into a mutually acceptable scheme implementation agreement, and unanimous recommendation by the AVJennings board.
"Ho Bee Land has also requested a period of initial exclusivity within which to undertake due diligence and negotiate and enter into a scheme implementation agreement," says AVJenningson Jan 15.
In its separate statement on Jan 15, Ho Bee says that the offer is a good opportunity to enhance its scale and capabilities in Australia.
"The merged Australian business will have a stronger financial position, increased revenue potential, and enhanced business’ capability to compete on a national level."
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AVJennings shareholders do not need to take any action in relation to either offer at this time. There is no certainty that either proposal will result in a transaction, says AVJennings.
The company will provide updates once it has completed its review of that proposal.
The earlier 67 Australian cents offer was a premium of more than 100% over AVJennings' last undisturbed price of 33 Australian cents.
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"Your directors are of the unanimous view that the proposal would provide shareholders the opportunity to realise their investment at a price significantly above historical trading levels," said chairman Cheong's address at AVJennings' AGM on Nov 28, 2024.
According to AVJennings' annual report, Cheong holds 54% of the shares.
AVJennings' Singapore quoted shares last traded at 63 cents.
