Ingenia Communities to buy Peet in major housing deal

• Ingenia Communities Group has agreed to acquire 100% of Peet via a scheme of arrangement.
• The offer values Peet at $2.12 per share, representing an 18.6% premium to its recent volume-weighted average price.
• The transaction aims to accelerate growth in land lease communities and create a larger national living sector platform.

Ingenia Communities Group (ASX:INA) has entered into a scheme implementation deed to acquire 100% of Peet (ASX:PPC) shares for $0.68 cash and 0.3367 Ingenia securities per Peet share, implying a value of $2.12 per share.

The implied offer price represents an 18.6% premium to Peet's 10-day volume-weighted average price of $1.79 as of Aug. 21.

Ingenia Communities CEO John Carfi stated, "The transaction delivers on our core strategic goals, increasing our scale and exposure to land lease development, creating a national platform, and accelerating and securing growth beyond our 5-year plan, as well as delivering a logical extension to our living strategy that responds to the evolution of the residential sector."

The deal terms include establishing a joint venture for the Flagstone City project valued at $615 million to enhance transaction funding efficiency.

Peet will be entitled to pay its FY26 final dividend of $0.065 per share without a reduction to cash consideration.

Ingenia stated that the transaction is expected to deliver low double-digit earnings per security accretion and secure 5,000 to 7,000 conversion lots with an end value of approximately $1 billion.

Following the announcement, the Ingenia Communities Group share price was unchanged at $4.04.

The combined entity plans to capitalise on Australia's long-term structural housing undersupply through master-planned communities and land lease developments.

The Peet board unanimously recommended that shareholders vote in favour of the scheme in the absence of a superior proposal.