(Reuters) -U.S.-based private equity firm Stonepeak will buy out New Zealand’s Arvida Group for NZ$1.24 billion ($745.74 million) excluding debt, as the investment firm looks to cash in on the demand for retirement-living and aged-care services.
Stonepeak, which has assets of around $71.2 billion, late Sunday said it is offering NZ$1.70 per Arvida share, which reflects a 65% premium to Arvida’s last close on Friday.
“Demand for high-quality retirement living in New Zealand has demonstrated strong resiliency through cycles and attractive growth in recent years,” Stonepeak said in a statement.
Shares of Stonepeak gained as much as 57.3% at NZ$1.62. Stock hit its highest level in more than two years, and marked its biggest intraday jump.
Arvida shares hit their highest levels since June 3, 2022.
The New Zealand-based company said on Monday it had accepted the offer, which was not subject to any financing or due diligence conditions.
Last December, Arvida said it had received a takeover approach in September, without giving further details around the timing of the offer.
Shares of the company had hit a monthly high of NZ$1.26 on Sept. 22. The stock has since dragged 18.5% to a close of NZ$1.03 on Friday.
Arvida in December rejected a same NZ$1.70 apiece buyout approach from an offshore infrastructure fund on account of the offer being highly conditional and not in the best interests of shareholders.
Arvida, however, accepted Stonepeak’s takeover offer on the back of the deal offering a compelling value and high certainty to completion.
Reuters could not immediately confirm if Stonepeak was the firm that had previously offered to take Arvida private.
Shares of rivals such as Ryman (NYSE:) Healthcare and Summerset on Monday jumped 7.7% and 2.25, respectively.
($1 = 1.6628 New Zealand dollars)
