The ASX listed affordable housing provider of land lease communities, residential communities, and holiday parks, is once again targeting the ASX-listed rental accommodation operator in an off-market bid.
A merger of the two companies would give Aspen a presence in every Australian state and the Northern Territory, comprising 8,000 dwellings and sites and a pipeline of 1,200 approved sites for future development.
Aspen, whose shares traded at $1.45 on Monday, has a market capitalisation of $314.50 million. It has eight land lease communities for over 50s.
Eureka's shares stood at 46 cents on Monday. It has a market capitalisation of $137.33 million and post-completion of buying Ingenia Gardens' sites in WA, Eureka’s portfolio will comprise 52 owned or managed villages, totalling 2,872 units across Australia.
On 23 January, Aspen announced to the ASX an improved takeover offer for 0.27 Aspen Group securities per share of Eureka.
This is a 15.6% increase on Aspen's original offer in March 2023 when it proposed 0.225 Aspen Group securities for Eureka shares on a one-for-one basis. Aspen subsequently withdrew the offer.
“Aspen’s Offer ratio is above the relative financial contributions of each group in terms of net asset value,” Aspen stated.
If it went ahead, Eureka security holders would hold some 27% per cent of the merged company.
“Aspen’s Offer ratio is above the relative financial contributions of each group in terms of net asset value,” Aspen stated.
Eureka responded, stating it had received no formal offer from Aspen, and urged its shareholders to take no action.